Cyber Insurance Illinois State Innovation Consulting Community - PowerPoint PPT Presentation

Cyber Insurance Illinois State Innovation Consulting Community

Agenda • Our Research Method • Segment Definition • Why is cyber different? • Major Takeaways • How will cyber change the industry? • Recommendations

Research Approach

Research Approach • Our Mission: • Macroeconomic Factor Analysis • Comparative Analysis • Industry Insights • Emerging Trend Analysis

Segment Definition

Cyber Insurance • The cyber umbrella includes anything relating to, or involving computers or computer networks. • Coverage designed to help organizations mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.

Why is cyber different? • Market Life Cycle • Ideally Insurable Risks • The loss must be determinable and measurable • Non-catastrophic loss • The chance of loss must be calculable • Potential Impact • General uncertainty

Perception • Cybersecurity and insurance only pertains to major corporations • Sparked by the media • Cybersecurity and insurance is only a concern for information holding industries.

Reality… • Cybersecurity and insurance is relevant to EVERY business

Key statistics: • 55% of all SMBs in the U.S. experienced a cyberattack in 2016 • 60% of small businesses who were breached closed within 6 months following the attack • It takes an average of 256 days for an organization to identify a cyber attack • The average cost per stolen record is $217

Demonstration

Major Takeaways

Cyber Threats • Ransomware • Phishing • Insufficient Recovery Planning • General Compliance with Cyber Security Policies • Hacking (DDOS, Key Logging, Cookie Theft) • Bots • Misuse of Employee Privileges • BYOD (Bring Your Own Device) • Lack of Internal Knowledge • Password Cracking

Emerging Technological Trends • IoT • Cloud Computing • Artificial Intelligence (AI) • Virtual Reality • Blockchain Technology • Quantum Computing

Projected 2018 Threats • Cyber-physical attacks • Specialty Device Hacks • CMS Breach • More huge data breaches • Ransomware in the Cloud • Cryptocurrency Malware

How will this impact your business?

Small to Mid-sized Business • More 3rd party vendors being compromised • Ransomware in the Cloud • Crippling damage to bottom line (60% of small businesses hit with a cyber-attack or data breach go out of business within 6 months) • Cyber-physical attacks

How are Insurers responding? • Primary Reimbursements: • Business Losses • Crisis Management & Notification • Lawsuits & Extortion • Investigation

Common Concerns • Lack of Transparency • Confusion • Relevancy • Lack of Clarity • Lack of Differentiation

Recommendations • Transparent Risk Assessment Models and Pricing Structure • Clear Guidelines & Explanations of Premium Adjustments • Targeted Underwriting Approach based on Industry & Exposure • Build policies with agility – be willing to proactively make adjustments and suggestions to clients as risks evolve • Consider implementing retroactive coverage • Consider Offering Coverage and/or Price Matches • Industries to watch

Questions?

Bastian Braukmann Amanda Gosbeth Bryan Greenburg Robert Heaser Josh Lakota Brett Werner-Powell