Such is the potential impact of a cyber security breach on a company’s reputation that there is a demand for insurance solutions that provide a raft of extra services to help deal with the consequences of a breach.
Speaking exclusively to Intelligent Insurer at this year’s Airmic conference, Dan Hopkinson, underwriter, technology, media and business specialty lines, said that there has been a steady rise in demand for Beazley’s innovative and comprehensive package.
“The insurance offering we have put together is very much like kidnap and ransom in that it’s not just insurance products – it’s very heavily serviced,” he said.
Beazley’s offering includes the services of privacy lawyers, IT forensics and a host of other service providers and help organisations in the event of a breach, including notification companies, mailing houses, a call centre, and data and credit monitoring companies.
“We started writing this in the US in 2008,” he said. “We found that for most companies it will be the first time they’ve handled a breach and the speed you have to work at is phenomenal – if the data’s gone, it’s gone.”
Such is the appeal of Beazley’s approach that technology companies seeking guidance on how to handle breaches have approached them for insights.
“Even they acknowledge you can’t be 100 percent secure,” he said. “It’s about having a plan in place, which is what we work on with our insureds to help them go through the process of handling that breach once it’s happened.”
Airmic, Europe, Beazley, Dan Hopkinson