Beazley has launched a new division called Cyber & Executive Risk, to focus on some of the most challenging risks that businesses face around the world.
Led by Mike Donovan, the new unit combines Beazley’s cyber insurance capabilities and its experience and expertise in executive risk, which includes directors’ & officers’ (D&O) insurance, and also employment practices liability.
Currently, Beazley’s executive risk team insures over 35 percent of the Fortune 500 companies, and over 50 percent of the firms that make up the Dow Jones Technology Index.
According to Beazley, the business lines that are now combined under the new structure, accounted in aggregate, for just over 25 percent of the insurer’s gross written premiums (GWP) in 2018, and is comprised of some of its fastest growing solutions. This includes Beazley Breach Response, and M&A transactional liability protection.
Donovan commented: “We brought our expertise in these areas together for two main reasons. First, they are rapidly changing risks that are growing harder for companies to manage. Technological, social and regulatory changes all impinge on these risks and it is critical for our clients to partner with an insurer that can keep pace with these changes. We provide not simply insurance coverage to respond swiftly to claims, but detailed guidance on risk prevention, mitigation and incident response.
“Second, the stakes are very high. We’re protecting critical assets – our clients’ data, their operations, their senior executives, and their corporate reputations. A cyber-attack can put all of these assets at risk, but a class action lawsuit against a company’s directors can be comparably damaging. And the acceleration and amplification of bad news through social media means that reputational damage can be inflicted faster and with greater effect.”