16 October 2017
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
“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:
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.”
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