Munich Reinsurance America, Inc. (Munich Re) has developed a new reinsurance solution for U.S property and casualty (P&C) insurance carriers seeking to provide cyber coverage to their small and medium-sized enterprise (SME) clients.
The new cyber solution will provide reinsurance capacity for limits up to $15 million, as well as technical expertise and tools such as a risk management portal and a post-breach services panel for primary insurers that may otherwise lack the experience or resources to provide cyber protection.
It will focus specifically on coverage for SMEs, which are the target of 72% of all U.S cyberattacks, according to a May 2016 industry report by IBISWorld.
Munich Re also said that the new offering would relate to coverage for a variety of cyber events, including a denial-of-service attack, unauthorised access, introduction of malicious code, privacy breach, extortion threat, regulatory proceedings, and third-party claims.
“Cyber events are a growing threat to businesses of every size,” said Annamaria Landaverde, Vice President and Head of Cyber for the Munich Re’s US Reinsurance Division.
“A cyber event can have a crippling effect on small to medium-size businesses, which often don’t have the resources or insurance protection needed to recover following such an occurrence,” Landaverde added. “Munich Re offers regional primary carriers a flexible, turnkey cyber solution to help protect their small to medium-size commercial customers.”
The solution is designed to include ISO’s stand-alone commercial cyber policy or the information security protection cyber policy, in addition to a primary carrier’s proprietary cyber product.
Munich Re also stated that insurance carriers participating in its cyber solution would retain a portion of the risk.
“We are pleased that Munich Re has recognized ISO’s cyber insurance program as part of its turnkey solution, as our program can provide primary carriers with an array of coverage options to help address the growing and diverse cyber market,” said Maroun Mourad, President of ISO Commercial Lines.
“That’s important because cyber risk is constantly changing and presenting significant challenges for those looking to insure the wide range of small and midsize businesses in need of coverage.”
