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Death, Taxes, and Cyberattacks

This case will shape the future of cyber risk insurance so worth following, even if it takes years to play out...: [...] Mondelez’s case against Zurich is proceeding in an Illinois court. Merck has filed a similar suit in New Jersey.The trials are likely to drag on for years because several key issues will have to be answered. The first might be: What is cyberwar? In 2006, Secretary of Defense Robert Gates, alarmed by the incessant briefings he was receiving on cyberattacks

Cyber take-up soars as risk awareness grows

It's great that businesses now see cyber risk coverage as 'normal'. As a next step I'd like to see discounts available to companies that can show they have taken steps to implement cyber security best practise...: Cyber-insurance purchases have doubled in five years in the US following high-profile disruptions from the WannaCry and NotPetya attacks, a Marsh report shows. Last year 38% of the global broker’s clients bought cyber cover, up from 19% in 2014, with growing rel

Norsk Hydro’s manufacturing close to regular after cyber assault

This was a criminal act, not a sophisticated nation-state attack. The current estimate is $35m in costs. I'll track this to see what the eventual cost (and insurance claim) turns out to be...: OSLO, April 5 – Production at Norwegian aluminium maker Norsk Hydro was back to near normal after a cyber attack last month, the company said on Friday. The group halted some of its production on March 19 and switched other units to manual operation after hackers blocked its systems

Virulent Ransomware Strains Trust in Cyber Insurance

We're seeing major cases where insurers are refusing to pay out for cyber attacks. This is mainly due to reliance on general liability insurance rather than specially crafted cyber risk policies. Time to review your cover...: [...] At the core, other than balance sheet prowess, insurance companies writing cyber risk aim to gain marginal differentiation at the policy language level and on what constitutes a covered peril. With ransomware, whose origins, motives and latency ar

Insurers Collaborate on Cybersecurity Ratings

It's a start but no substitute for a thorough assessment of how threats translate into risk, what security controls are put in place; and their effectiveness. Just buying the newest shiny techno-toy doesn't make your business secure...: According to The Wall Street Journal, Marsh & McLennan, a professional services company specializing in risk and insurance, will evaluate enterprise cybersecurity technology in a program called "Cyber Catalyst." The article states, "Marsh

Companies at risk as Hiscox rules out DLA Piper’s cyberattack claim

It looks like DLA Piper were relying on general cover rather than specialist cyber risk policies. Time to check your own cover...: [...] DLA Piper, Britain’s biggest law firm by revenue, is bringing a case against Hiscox for refusing to pay out on a multimillion-pound insurance claim for damage caused by the Petya cyberattack, The Times has learnt. The dispute comes as the boards of leading businesses, including Lloyds Bank, Tesco Bank, TSB, Talktalk and British Airways,

Aluminum producer hit by outages in major cyber attack

This was all over my twitter feed yesterday. I'm looking for a detailed explanation of how the attack managed to spread but in the meantime I was intrigued by the statement (below) from the CFO. I really hope he didn't mean "It's ok, we have insurance"...: [...] On a conference call with reporters, chief financial officer Eivind Kallevik said the company didn't know the identity of the hackers and that it has cyber insurance. The shares slid 1.1pc to NKK35.44 (€3.66) by earl

Analysis: SMEs: Emerging risks – Protecting the little guys

Useful article on the risks facing small businesses in the UK. One thing I noticed was this comment about paying out for fines. The letter of the law is that you cannot receive insurance cover for criminal acts so don't expect a payout to cover anything that happens to your business as a result of poor cyber hygiene...: [...] With many more providers in the cyber space, Banbury says the market is functioning well. “Providers we use have agreed they will meet the cost of fine

The biggest challenge: keeping up with cyber risk

Useful summary of the threats that come with digital transformation...: The greatest cyber security challenge is simply keeping up with the rapidly evolving threat, Aon said today. The global professional services firm released its 2019 Cyber Security Risk Report, detailing the most severe cyber security threats and challenges organisations are currently facing. “The rapid enhancements and pace of technological adoption, has meant that the number of touch-points within

The $2 Million Phish

Two lessons here: be on alert for fraud and train your staff to be aware; use a specialist broker to get the right insurance cover that will actually pay out...: [...] News stories about cybersecurity incidents involving phishing are routine. However, just because phishing schemes are a well-known attack vector does not lessen the risk that organizations face from these schemes. The town of Farmington, Connecticut learned that lesson when city coffers lost over $2 million to