Demand for holistic cyber cover addressing business interruption and supply chain risks has increased significantly, Beazley and Munich Re have reported through their Vector partnership.
The duo forged the partnership back in 2015 to offer bespoke expertise and deep capacity for the world’s largest and most complex cyber risks, allowing some of the world’s largest companies to obtain cover of up to $100mn (or EUR100mn) for a wide range of first party and third party cyber exposures.
“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 cover. 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 the boardroom wants to address.”
The carriers said that recent high profile cyber-attacks such as WannaCry and NotPetya have highlighted clients’ vulnerabilities.
While cyber policies back in 2015 only addressed third party liabilities arising from data breaches and were more relevant to firms holding large amounts of personally identifiable customer data such as banks, many other industries such as large manufacturers, industrial companies and critical infrastructure are now very worried about the loss of production capability, whether caused by an attack on the company’s own system or on a critical supplier.
Nonetheless, Beazley and Munich Re noted that the the loss of customers’ personal data is still a concern, and that concern is increasing with the European Union’s General Data Protection Regulation coming in to force next year.
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.”