Demand for holistic cyber cover for business interruption (BI) and supply chain risks has surged, report Beazley and Munich Re after having joined forces to offer complex cyber risk cover through their Vector partnership.
“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.
“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 that boards want addressed.”
The re/insurers found that for manufacturers, the greatest fear is a loss of production capability, whether caused by an attack on the company’s own system or on a critical supplier.
The loss of customers’ personal data is still a concern, and that concern is growing with the coming into force of the European Union’s General Data Protection Regulation, next year.
In response to these evolving needs, Vector has created individual coverages for manufacturers seeking contingent BI cover should a cyber-attack bring plants to a standstill, a multi-national conglomerate wishing to enhance existing property coverage, retailers wanting comprehensive data breach protection, and financial institutions seeking to bundle pre-existing cyber components within traditional property & casualty (P&C) products, and further augment coverage within one stand-alone cyber policy.
Chris Storer, head of cyber solutions for Munich Re’s Corporate Insurance Partner, commented; “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.”