LONDON--July 3, 2012--(BUSINESS WIRE)--New research by ACE Group today revealed that over half of insurance brokers (58%) are not actively engaged in discussing cyber risk with their clients, even though a significant proportion of UK businesses (39%) rely on their brokers for information on the emerging cyber exposures they face.
The findings are published as cyber security breaches and computer hacking attacks become an increasing concern for UK companies. In 2011, Scotland Yard’s ACPO National e-Crime Programme (NeCP) Working Group was allocated £30 million of government funding after cyber security was recognised as one of the biggest threats to the UK*.
At a breakfast briefing attended today by over 100 insurance brokers, ACE said that it had reviewed and relaunched its cyber insurance solution 'Dataguard Advantage' in response to the changing risk environment and called on insurers and brokers to work in close partnership to meet client needs. An interactive poll of brokers during the event revealed that most insurance brokers currently discuss cyber risk with clients either ‘infrequently’ or ‘never’.
Using real claims scenarios, ACE cyber underwriting expert, Iain Ainslie, discussed the key issues businesses and their insurance brokers need to consider, including:
•Potential first party risks
•Third party liability
• Legal and crisis management
•Costs of breaches and responding to an incident
• Types of insurance cover available
Also speaking at the breakfast was Ken Munro, Partner at computer systems and network security specialist Pen Test Partners, who talked about the tactics used by hackers (including social engineering) to target businesses and their employees. This was followed by a live hacking demonstration.
Iain Ainslie, technology and cyber underwriter for ACE, commented: “A vast number of cyber threats affect organisations every day which can result in significant reputational damage, financial loss and business disruption. Many traditional commercial property and casualty policies fall short of the cover needed for comprehensive protection against the risks associated with computer systems and data storage. It is increasingly important that brokers can confidently discuss cyber exposures with clients, helping them to understand the risks and appropriate countermeasures that they can implement to reduce their exposure and manage the fallout from any incident.”
The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
ACE UK & Ireland’s five regions are:
∙ Ireland (Dublin and Belfast) ∙ Scotland (Glasgow) ∙ The North (Leeds, Manchester, Newcastle) ∙ Midlands (Birmingham) ∙ London and South East (London, Maidstone, Reading, Watford)
ACE’s ‘Glossary of common terms used in cybercrime and IT insurance’ is available for brokers on request firstname.lastname@example.org with full information about ACE’s Dataguard Advantage available fromwww.acegroup.com/uk
Notes to editors:
* The funding has been provided by the government over a four-year period to support the development of the Met's Police Central e-Crime Unit (PCeU), an 85-strong team whose remit is to tackle those responsible for the most serious cybercrime incidents of computer intrusion, distribution of malicious code (malware), denial of service (DDoS) attacks and internet-enabled fraud.
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