Beazley and Munich Re report surging demand for holistic cyber cover that addresses business interruption and supply chain ri...
October 16 2017 - 9:01AM
Beazley and Munich Re, through their Vector partnership, have
reported strong demand for cover to guard against cyber-attacks
threatening global companies.
Vector was established in 2015 to offer bespoke expertise and
deep capacity for the world’s largest and most complex cyber
risks. At that time most cyber policies only addressed third
party liabilities arising from data breaches. As such, they
were relevant to firms holding large volumes of personally
identifiable customer data such as retailers and financial
institutions. But cyber-attacks were perceived as less of a
threat by many other industries such as large industrial companies
and providers of critical infrastructure.
“Since we established Vector, we’ve seen a significant shift in
the pattern of demand for cyber cover,” said Paul Bantick,
technology, media and business services UK focus group leader at
Beazley. “Every company insured through Vector has sought
considerably broader coverage, in particular for business
interruption and contingent business interruption. While
these businesses have traditional property and cyber liability
policies in place, they have recognised that they do not have
complete protection for cyber-related events and this is clearly an
issue that boards want addressed.”
Recent high profile cyber-attacks such as WannaCry and NotPetya
have highlighted their vulnerabilities. For manufacturers, the
greatest fear is a loss of production capability, whether caused by
an attack on the company’s own system or on a critical supplier.
The loss of customers’ personal data is still a concern, and that
concern is growing with the coming into force of the European
Union’s General Data Protection Regulation next year.
In response to these evolving needs, Vector has successfully
delivered complex and highly individual coverages for:
- manufacturers seeking contingent business interruption cover
should a cyber-attack bring plants to a standstill
- a multi-national conglomerate wishing to enhance existing
property coverage
- retailers wanting comprehensive data breach protection
- financial institutions seeking to bundle pre-existing cyber
components within traditional P&C products and further augment
coverage within one stand-alone cyber policy
Chris Storer, head of cyber solutions for Munich Re’s Corporate
Insurance Partner, said: “Vector has been highly successful in
areas where our shared and complementary expertise can help clients
prepare for rapidly evolving cyber risks. The coming together
of our specialised experts makes Vector a powerful proposition for
companies looking beyond their traditional coverages.”
For further information about Vector, visit
www.vectorcyber.com
About Beazley
Beazley plc is the parent company of specialist insurance
businesses with operations in Europe, the US, Canada, Latin
America, Asia, the Middle East and Australia. Beazley manages six
Lloyd’s syndicates and, in 2016, underwrote gross premiums
worldwide of $2,195.6 million. All Lloyd’s syndicates are rated A
by A.M. Best.
Beazley’s underwriters in the United States focus on writing a
range of specialist insurance products. In the admitted market,
coverage is provided by Beazley Insurance Company, Inc., an A.M.
Best A rated carrier licensed in all 50 states. In the surplus
lines market, coverage is provided by the Beazley syndicates at
Lloyd’s.
Beazley is a market leader in many of its chosen lines,
which include professional indemnity, property, marine,
reinsurance, accident and life, and political risks and contingency
business.
For more information please go to: www.beazley.com
About Munich Re
Munich Re stands for exceptional solution-based expertise,
consistent risk management, financial stability and client
proximity. This is how Munich Re creates value for clients,
shareholders and staff. In the financial year 2016, the Group –
which combines primary insurance and reinsurance under one roof –
achieved a profit of €2.6bn. It operates in all lines of insurance,
with over 43,000 employees throughout the world. With premium
income of around €28bn from reinsurance alone, it is one of the
world’s leading reinsurers. Especially when clients require
solutions for complex risks, Munich Re is a much sought-after risk
carrier.
Eleanor Lewis
Beazley Group
+44 (0)20 7667 0538
eleanor.lewis@beazley.com
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