Cyber Insurance Presentation
Presentation Outline Introduction General overview of Insurance About us Cyber loss statistics Cyber Insurance product coverage Loss examples Q & A
About Us
A- Rated reinsurance company Top tier Zimbabwean reinsurer Financially sound entity Innovative reinsurance solutions provider Over 21 years old
Overview of insurance
974 million records compromised in 2014 = 31 per second 188 days average time taken to identify a breach $400bn Est global annual cost cybercrime 81% percentage don t detect breach themselves
Cyber Loss background A company like yours
Recap: Risks posed by an information security breach Reputational damage System unavailability and downtime Loss of revenue, data or competitive advantage Litigation arising from compromised data Costs incurred in responding to an incident: Legal defence and settlement Forensic investigation Affected party notification and remediation Public relations costs Industry / regulatory fines and penalties
Cyber Insurance What is it? Also thought of as information or data breach insurance, provides cover for information and network security breaches Effectively transfers breach response function to insurer Specifically tailored to address intangible property and non-physical perils First party and third party cover
First party cover
Loss or damage to digital assets loss or damage to data or software programs, resulting in cost being incurred in restoring, updating, recreating or replacing these assets to the same condition they were in prior to the loss or damage
Business interruption from system downtime Interruption, degradation in service or failure of the network, resulting in loss of income, increased cost of operation and/or cost being incurred in mitigating and investigating the loss
CyberExtortion Attempt to extort money by threatening to damage or restrict the network, release data obtained from the network and/or communicate with the customer base under false presences to obtain personal information
Reputational damage Arising from a data protection breach being reported (whether factually correct or not), that results in loss of intellectual property, loss of income, loss of customers and/or increased cost of operation
Theft of money and digital assets direct monetary losses and associated disruption from theft of computer equipment, as well as electronic theft of funds / money from the organisation by hacking or other type of cyber crime
Third Party Coverage
Liability for damage to or corruption / loss of thirdparty data or information, including payment of compensation to customers for denial of access, failure of software, data errors and system security failure Jeep hacked Third Party Coverage
Third Party Coverage Defense costs Forensic Investigation costs Fines and penalties Regulatory fines Industry associations fines
Examples of claims Physician s work laptop stolen, 37,000 records compromised Legal counsel - notification requirements, the response process Department of Health and Human Services investigation Counsel provide proof of strong privacy controls and training procedures Estimated cost to respond to the breach (at $10 per record): $370,000
Examples of claims Plastic surgeon posted unauthorized before and after photos of several patients on her website Issue was discovered when a patient performed a Google search on herself, and the explicit pictures showed up in the search 15 invasion of privacy actions against the plastic surgeon to date, with several settling in the range of $150,000 per plaintiff Additional legal expenses incurred: $50,000
A poor Man will always say there are no thieves in the neighborhood Contacts Cuthbert.masukume@fbc.co.zw www.fbc.co.zw/reinsurance Thank you.