No. 1: There will be an estimated 50 billion devices and processes connected to the Internet by 2020. (iStock)
No. 2: Virtually all aspects of our professional and personal lives are vulnerable to cybercrime. (Shutterstock)
No. 3: The cost of global cybercrime is estimated to be $400 billion annually, which makes this risk a “C-Suite” and boardroom concern. (Shutterstock)
No. 4: Hacking is causing business interruption, bringing companies, operations and processes to a grinding halt. (Shutterstock)
No. 5: WannaCry malware infected roughly 200,000 computer systems worldwide. (ALM Media archives)
No. 6: Public companies paid $2.4 billion for SEC enforcement actions in 2015. (Stuart Briers for ALM Media)
No. 7: Cyber and executive risks are getting harder for companies to manage. (Shutterstock)
No. 8: In this digital landscape, business reputational crises can “go viral” in a matter of seconds. Consider that… (iStock)
No. 9: The #MeToo hashtag appeared on Twitter 19 million times in its first year of use — to say nothing of its use on other social media platforms such as Facebook, Instagram or Reddit. (Shutterstock)
No. 10: The growth of insurance for transactions suggest cybercrime has penetrated the M&A market. Consider that the number of mid-market M&A deals utilizing reps & warranties insurance has grown 225% since 2015. (Shutterstock)
In a move that reflects the growing urgency for companies, organizations and institutions worldwide to proactively face down and mitigate cybercrime, Beazley, a longtime cyber insurance market leader, announced recently that it has combined its cyber and executive risk departments into a single division.
“The stakes are very high,” Beazley’s new Cyber & Executive Risk Division Head Mike Donovan said in a press release. “We’re protecting critical assets — our clients’ data, their operations, their senior executives, and their corporate reputations.”
Donovan acknowledged the organic and multidimensional nature of cyber risk as well as the power that a single successful cyberattack has to completely shutter business operations.
“A class action lawsuit against a company’s directors can be comparably damaging,” Donavan said. “And the acceleration and amplification of bad news through social media means that reputational damage can be inflicted faster and with greater effect.”
The carrier says its executive risk team currently insures more than 35% of the Fortune 500 and more than half of the companies comprising the Dow Jones Technology Index. The new division, which includes an in-house cyber incident response team, plans to capitalize on the company’s accumulated expertise in executive risk, including directors’ & officers’ (D&O) insurance and employment practices liability (EPL).
This move builds on Beazley’s goal of combining services and policies to provide clients with innovative coverage options. The bullet points outlined in the slideshow above highlight some of the reasons why cyber coverage necessities such an approach.