Beazley, Aspen & Brit launch cyber consortium
Insurer Beazley has teamed up with Lloyd’s syndicates managed by Aspen and Brit Global Specialty to launch the International Cyber Consortium.
The consortium will provide robust data breach cover to businesses domiciled outside the US with revenues of more than $5 billion and will be available to companies across all industries.
It will write business on both a primary and an excess basis and will bring additional premium capacity of up to $60 million to this market.
Lloyd’s will provide 100 percent of the security underpinning the consortium’s policies, while Beazley will act as consortium manager and lead on claims handling.
Paul Bantick, head of London and international business for Beazley’s technology, media and business services focus group, said: “The sequence of high profile data breaches that we have seen at US retailers, banks and healthcare institutions has underlined the need for robust insurance cover.
“Businesses outside the United States are rapidly discovering what US businesses and their customers have known for some years: that a data breach is not a matter of if, but when. Businesses outside the US hold just as much personal data in trust for their customers and the reputational consequences of a data breach can be severe.”
Tom Allen, head of technology liability and data protection indemnity at Aspen Insurance, said: “The Lloyd’s market has historically been at the forefront of innovation in global insurance and reinsurance and the market has continued to play this role in addressing one of the fastest growing risks of the 21st century – data breaches. We are delighted to participate in this important initiative to strengthen further Lloyd’s pivotal role in this market.”
Ben Maidment, class underwriter of global cyber, privacy and technology at Brit Global Specialty, added: “Through the consortium we are empowering Lloyd’s brokers to offer insurance that is competitive with what companies may be able to obtain in their local markets, backed by Lloyd’s unrivalled intellectual capital and a claims service that we believe to be superior.
“The members of the consortium have helped well over 2000 businesses successfully manage data breaches and their potentially damaging repercussions.”
The shares of individual risks allocated to individual consortium members will vary in line with the members’ underwriting appetite. Business will be serviced in local languages, with policy forms to be available in multiple languages.
