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Innovative insurers are moving quickly to help their customers strengthen their cyber security. They are drawing on their extensive experience and expertise in managing risk to introduce new products and services that meet the specific challenges of the digital economy.
In my previous blog I highlighted how insurers can help their customers meet the huge challenges of cyber security by delivering urgently needed risk management skills and resources. They can shift from being a provider of insurance to become a trusted partner that helps organizations implement strategies, technology and governance. This close relationship is good for the businesses of both the carrier and the customer.
The escalating demand for robust and resilient cyber security presents insurers with a further opportunity. They can develop and tailor insurance products and services that help organizations enhance their cyber security.
Some smart insurers have been quick to respond to this new market opportunity. The latest edition of the Accenture Innovation Series, a six-monthly review of innovation in the global insurance industry, identifies three innovative insurers that are rising to the cyber security challenge.
DUAL Italia – The European insurance and reinsurance specialist has introduced a policy to protect professionals and businesses from technology risks and cyber attacks. DUAL Cyber protects them from liability arising from the violation of data devices and resulting loss or unauthorized disclosure of third party information. The cover includes all the costs of notification, public relations, investigation and recovery of data. It also refunds companies for profits lost because of the interruption of operations as a result of a cyber attack or the failure of a third-party data service.
AmWINS – The global distributor of specialty insurance products and services has introduced a dedicated excess facility, in some of its products, that covers cyber liabilities. The facility, backed by Lloyd’s of London paper, is available to customers in North America.
AXA – The financial services group has launched the ‘Cyber Risk’ range of products in Spain. They provide consumers with guaranteed legal protection from the risks of internet use. Such risks include identity theft, online fraud and non-delivery of internet purchases.
These companies are among a growing number of insurers launching cyber security solutions. Expect a rush of such products and services in the months ahead. The emergence of the digital economy is opening opportunities not only for a new generation of products and services. It is also creating new markets. The potential for insurance solutions that address cyber security risks in digital healthcare and home automation, for example, is likely to be substantial.
Cyber security offers insurers a great opportunity to grow their businesses by combining their traditional strengths in risk management with innovative insight into the new problems their customers face in the digital economy.
For some further insight in the business potential of cyber security take a look at some those these links.