10 facts about cyber coverage 2017-11-13T15:22:48+00:00
Cyber Facility

10 facts about cyber coverage

  • Insured’s assume all or some elements of cyber are already covered in their traditional insurance (Property & Casualty) programme. Data / Information is an undervalued asset.
  • Most average systems can be hacked in just minutes.
  • Global cybercrime in 2014 is estimated to have cost $400 billion. The virus “my doom” is estimated to have caused $38.5 billion in global cost to business !
  • A survey of 111 US claims, showed losses are typically caused by – 29% Hackers, 24% Rogue Employees, 13% Staff Mistakes, and 11% Malware/virus.
  • Largest losses – US – Court ventures (Experian) 200m records, Canada – Ashley Madison 37m,  Europe – Car Phone Warehouse 2.7m records.
  • Average loss per record is estimated to be around $300. However, the range of costs varies hugely on each breach with some reported to be in excess of $1,000 per record.
  • Reputational exposure – if the breach is not handled well by the company it can easily lead to commentary via social media and national / global news exposure leading to the rapid advancement of declining revenues.
  • Cyber premium volume estimated to be $1.6bn (2014) and is expected to rise to $10bn in 5 years, especially when legislation in Europe comes into force in the early part of 2016.
  • FBI’s most wanted hacker is Evgenily Milkhailovich Bogacher for the virus “Zeus” with a USD3m reward for his capture.
  • Every business no matter how large or small is exposed to the risk of cyber from either the inside or outside world.

 

So what can be done to control or mitigate this exposure:-

Before – Risk management

Before – Risk management

  • Security survey to highlight any potential weaknesses.
  • System security up to date, firewalls and virus software.
  • Internal controls, staff hand book updated, online training about scams and phising.
  • IT Security training, passwords strengthened and changed regularly
  • Cyber Breach disaster plan in place

Risk transfer – Insurance

Risk transfer – Insurance

  • Forensics to determine whether a system has been breached and what need to be done to control the breach from a systems perspective.
  • IT system repair to get the system back up as quickly as possible
  • Business interruption following any downtime
  • Legal costs to review contracts with 3rd parties and to establish exposure and liability.
  • 3rd Party Liability cover – including media, intellectual property,
  • Reputation management, crisis management, PR and advertising
  • Data Ransom and extortion
  • Terrorism coverage
  • Physical damage resulting from a breach. (EG physical controls tampered with) and resulting business interruption.
  • Regulatory and PCI fines
  • Loss of attraction / reputation business interruption (limited markets)
  • Electronic fraud cover

After – Claims and Services

After – Claims and Services

  • Breach claims manager
  • Dedicated IT system restorers
  • Dedicated experienced legal firms
  • Public relations firm
  • Crisis communication experts
  • Credit monitoring, and call centre

Please note the level and broadness of insurance coverage is on a case by case basis and may not necessarily include all the components of cover listed above.