Insurance Implications of Cybercrime for Financial Institutions
Cybercrime is on the rise in the financial industry, with security breaches becoming a regular threat and attacks growing in complexity. Despite the considerable security measures and resources banks use to safeguard their assets – data, monies and securities – loss control and mitigation cannot eliminate the risk.
While insurance is effective at reducing the financial impact of cyber events, policy response in practice is not always a certainty. Disputes with insurers – sometimes leading to litigation – can raise questions about how coverage should respond to multiple types of loss stemming from a cyber event.
Protecting High-Value Assets: Insurance Implications of Cybercrime for Financial Institutions discusses these issues, clarifying the differences between cyber (network security liability) and crime (FI Bond) coverage, and recommending that banks employ multiple policies to ensure broad, comprehensive coverage against cyber exposures.
For more information about insurance solutions addressing cyber risk for financial institutions, contact Marsh.