Marsh Launches Suite of New and Enhanced Cyber Risk Solutions to Address Business Interruption Risk
New York | April 13, 2018
Marsh, a global leader in insurance broking and innovative risk management solutions, today announced the launch of a suite of new and enhanced risk analytics and insurance solutions to address the growing issue of business interruption (BI) risk arising from cyber-attacks.
Recent major cyber events, such as the WannaCry and NotPetya attacks, have raised awareness about the significant business interruption risk and associated economic losses posed by new and emerging cyber threats. As a result, firms are increasingly looking to better quantify and mitigate the specific cyber risks that could impact their operations, disrupt supply chains, and/or result in financial and physical damage.
Marsh’s new cyber BI suite includes proprietary insurance wording and risk assessment analytics, integrated into seamless, tailored client solutions.
Marsh’s Cyber CAT 3.0, the next generation of its market-leading cyber policy, provides some of the broadest coverages available – now backed by nearly $2 billion in total potential capacity – for critical cyber risks such as cyber BI, cyber contingent BI, Internet of Things (IoT), and breach of the EU General Data Protection Regulation. Policy enhancements and expansions include available coverages for reputational loss, IoT device “bricking”, and costs for post-event computer system upgrades and rebuilding expense.
In addition, Marsh’s Cyber ECHO excess solution now has capacity of up to $100 million in limits, excess of an underlying cyber or technology E&O policy, and a choice of reinstatement options priced at inception, which policyholders can elect to purchase at any time during the policy period.
The new Marsh cyber BI suite also features ground-breaking new cyber risk analytic and quantification offerings, which provide organizations with critical insight to better understand their cyber exposure, and which inform decision-making, including setting of appropriate insurance limits and financial evaluation of cyber risk mitigation efforts. Quantification and analytic tools range from new benchmarking capabilities, including benchmarking likely losses from a NotPetya-severity BI event, to in-depth company-specific cyber BI loss modelling.
“Despite years of investment in cybersecurity technology, cyber risk continues to be one of the top concerns for global business leaders,” said Thomas Reagan, leader of Marsh’s US Cyber Practice. “Recent events such as the NotPetya malware demonstrate that business interruption risk – and the associated potential for economic loss – is a different order of magnitude than what has come before; and the risk is still growing.
“Existing assessment tools and insurance solutions have not kept pace with fast-evolving nature of cyber risk, particularly the critical issue of business interruption risk. With the launch of our integrated suite of new and enhanced cyber BI solutions, Marsh is responding to our clients’ request for tailored, next generation, and practical tools to help them measure and manage cyber business interruption risk,” Mr. Reagan said.
Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 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 (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $17 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses:. Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.