Beazley and Munich Re report surging demand for holistic cyber cover that addresses business interruption and supply chain risks
Beazley and Munich Re, through their Vector partnership, have reported strong demand for cover to guard against cyber-attacks threatening global companies.
London. 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.”
This company news contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.