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London, 16 October 2017
Beazley and Munich Re, through their Vector partnership, have reported strong demand for cover to guard against cyber-attacks threatening global companies.
Vector was established in 2015 to offer bespoke expertise and deep capacity for the world’s largest and most complex cyber risks. At that time most cyber policies only addressed third party liabilities arising from data breaches. As such, they were relevant to firms holding large volumes of personally identifiable customer data, such as banks and financial institutions. But cyber-attacks were perceived as less of a threat by many other industries such as large manufacturers, industrial companies and critical infrastructure.
“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 cover. 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 the boardroom wants to address.”
Recent high profile cyber-attacks such as WannaCry and NotPetya have highlighted their vulnerabilities. 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 successfully delivered complex and highly individual coverages for:
Chris Storer, head of cyber solutions for Munich Re’s Corporate Insurance Partner, said: “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.”
For all coverages, terms, conditions and exclusions, refer to the actual insurance policy. Beazley has authority to enter into contracts of insurance on behalf of the Lloyd’s underwriting members of Lloyd’s syndicates 623 and 2623 which are managed by Beazley Furlonge Limited. Beazley Furlonge Limited is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK (ref 204896) in its capacity as an insurer.
Corporate Insurance Partner is the description of a number of business units across different legal entities of Munich Re that provide individual solutions for medium-sized and large industrial clients. The legal entities include Munich Reinsurance Company in Munich (and its branches in Paris, Singapore, and Hong Kong), Munich Reinsurance America, Inc., and Great Lakes Insurance SE (and its branches in Australia, New Zealand, Italy, Switzerland and the UK).