The new flexible cyber insurance product from Allianz comes after research revealed the high cost of cyber attacks to mid-sized businesses
The new product will target businesses with annual revenue between £15m and £1bn
German insurance giant Allianz has launched a new flexible insurance product to cover the cyber risks of small and medium-sized businesses (SMBs) that allows customers to choose their indemnity limits.
Cyber Select was created to address the fact that SMBs — defined as companies with an annual turnover no higher than £350m — are increasingly under threat from cyber attacks.
Allianz cited a study from UK business and financial advisory firm Grant Thornton that found the total cost of cyber security breaches to companies with a turnover between £15m and £1bn was “at least £30bn”.
Allianz commercial underwriting director Catherine Dixon said: “Data has overtaken oil as the most valuable resource, and data loss can be costly financially, and for the reputation of a business.
“Cyber Select is more than just insurance, it’s an opportunity to access a whole suite of experts who are specialists in helping businesses identify, detect and recover from cyber-attacks.”
Management consultancy giant EY found in its latest Global Information Security Survey that 35% of the world’s organisations believe they have adequate cyber risk coverage.
Dixon believes brokers have a “strong role” to play if this number is to increase, at least in the UK.
“Taking preventative steps is key, as cyber hackers use sophisticated methods and businesses need to do all they can to stay one step ahead,” she added.
“Through our expert risk-management panel, businesses can examine their system’s strengths and vulnerabilities to lower their overall risk.
“However, should a data loss or theft happen, customers can be reassured that they also have access to specialist advice, support and cover to help them recover after a breach.”
What does Allianz Cyber Select insurance cover?
Allianz said its Cyber Select proposition offers customers the option of selectable insurance indemnity limits and can be purchased as a standalone product, or packaged with property and casualty covers.
Coverage extends to liabilities that stem from a cyber-attack, including costs and lost income as well as forensic IT and legal support in the event of an actual or suspected breach.
Also included is business interruption cover, which pays out for losses incurred due to the inability to access IT systems up to 180 days following a cyber event.
Those holding a Cyber Select policy gain access to a 24/7 incident response helpline, specialist claims team and free risk management support.
As part of its crisis management cover, Allianz said it will pay the “reasonable and necessary fees and expenses” associated with an IT forensic expert identifying, containing and repairing a breach.
To reduce the risk of a cyber attack, the insurer has partnered with risk management company BitSight to give Cyber Select customers access to its cyber security performance and vulnerability assessment service.