Beazley, a UK insurance company contracted with Lloyd’s of London, has launched the market’s first cybersecurity catastrophe bond for a total payout of USD 45 million (GBP 37 million), should claims exceed USD 300 million. The catastrophe bond is intended to protect insurers like Beazley from massive cyber payouts, which have increased exponentially in recent years due to the rise in cybercrime.
The CEO of Zurich Insurance, one of Europe’s largest insurance companies, has said that cybercrime could soon become uninsurable, warning that the risks surpassed climate change and pandemics. “What will become uninsurable is going to be cyber,” said CEO Mario Greco, speaking to the Financial Times. “What if someone takes control of vital parts of our infrastructure, the consequences of that?”
You may feel safe and secure if you’ve got your systems all patched. But do you know what your cyber insurance policy says about patching?
Risk is a part of any business activity, and GDPR is just another risk many companies need to face. But balancing compliance vs. insurance can be tricky.
AI and machine learning are transforming how businesses do business. Latest example: The insurance industry, which is reaping the benefits of Big Data.
