Marsh Launches New Global Excess Cyber Risk Facility
London | January 27, 2016
Cyber Echo Brings Greater Stability to a Volatile Excess Cyber Insurance Market
Marsh, a global leader in insurance broking and risk management, today announces the launch of Cyber ECHO, a new global excess cyber risk facility that provides more reliable insurance coverage for organizations around the world.
Following a series of high-profile cyber losses, underwriters have become more selective and, in some cases, are reducing the amount of capital they are willing to deploy on certain risks — especially those involving health care and payment-card data. This is particularly acute in the excess cyber market, where rates have more than doubled in the US over the last 12 months.
Cyber ECHO brings greater stability to the excess market with up to $50 million in “follow form” coverage for clients of any industry sector and risk profile around the world. Underwritten by leading Lloyd’s of London syndicates, the facility is designed to respond consistently to the terms and conditions outlined in the primary cyber policy. Such follow-form language helps to mitigate coverage ambiguities that can sometimes lead to costly disputes and/or delays in claims payments.
Cyber ECHO also includes a pre-priced option that allows insureds to reinstate policy limits, should they experience a cyber event during the policy period that has the potential to exhaust their policy limits.
“While overall capacity in the cyber market remains abundant, the excess market is highly volatile,” said Bob Parisi, Marsh’s US Cyber Product Leader. “With Cyber ECHO, we are providing clients of all industry sectors with an efficient and more predictable excess coverage solution.”
Leslie Kurshan, head of product development for the FINPRO Practice at Marsh UK, added: “Inconsistent wordings and varying terms and conditions between primary and excess insurance policies can contribute to significant delays in claims being paid and may even result in the failure to recover costs from insurers. Cyber ECHO helps to mitigate these issues, and is designed to aid in swift recovery from a loss.”
Marsh is the world’s leading insurance broker and risk adviser. With over 35,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data driven risk solutions and advisory services. Marsh is a business of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue approaching US$17 billion and 76,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.