Beazley has announced the launch of a new division that is to be led by Mike Donovan, called Cyber & Executive Risk, launched to focus on some of the most challenging risks that businesses face around the world.
The new unit combines the specialist insurer’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, the firm’s executive risk team insures over 35% of the Fortune 500 companies, and over 50% of the firms that make up the Dow Jones Technology Index.
Donovan, Beazley’s Head of Cyber & Executive Risk, 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.”
According to Beazley, the business lines that are now combined under the new structure, accounted in aggregate, for just over 25% 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.
