Beazley Documents
Beazley Cyber
Cyber Resilience
Beazley Cyber Insurance
Improving Cyber Resilience
Beazley outlines their comprehensive cyber resilience offerings for their US clients with Beazley Breach Response (BBR), InfoSec, and MediaTech policies. The program aims to help businesses improve their cyber defenses against the increasing threat of cyberattacks, addressing the growing complexity and high costs associated with cyber claims.
Beazley highlights that the average cost of a data breach caused by phishing is $4.9 million, and 82% of cyber incidents are caused by human error. Beazley has expanded its risk management services to cater to clients at various stages of their cybersecurity journey to combat these issues.
Key Features of Beazley’s Cyber Resilience Offerings:
1. Free Offerings: All eligible clients receive access to:
- Risk management portal
- Employee training
- Vendor discounts
- Risk management webinars
- Onboarding video
- Secure incident response preparation room
2. Tiered Services: Based on premium levels (30K+, 50K+, and 100K+), clients can access additional services:
- Onboarding call with Cyber Services (for clients with $35M+ annual revenue)
- Incident Response Plan (IRP) review
- One risk management offering per policy year
3. Risk Management Options: Clients can choose from various offerings based on their premium level, including:
- Microsoft 365 cybersecurity assessment
- Ransomware and BEC best practices workshop
- IT rationalization assessment
- Crisis communications workshop
- Phishing-resistant MFA keys
- Simulated phishing campaigns
- Board of Directors presentation on data security
- Incident response workshop with tabletop exercise
- Business continuity planning workshop
- Ransomware readiness assessment
- C-suite/Board training on cyber resiliency
Beazley provides a detailed breakdown of these offerings, including typical costs and the number of users or duration of services included. It emphasizes that these benefits are available at no additional cost to eligible clients.
Beazley’s cyber resilience program offers a comprehensive suite of services designed to help businesses of various sizes improve their cybersecurity posture, reduce risks, and better prepare for potential cyber incidents. The tiered approach allows clients to access increasingly sophisticated tools and training as their premium levels increase, providing a scalable solution for evolving cybersecurity needs.
Beazley Cyber
Coverage for Risks <$35M
Beazley Cyber
Cyber Coverage for Risks Under $35 Million
Beazley outlines its cyber coverage offering for risks under $35 million in revenue. The company’s flagship product, Beazley Breach Response (BBR), provides comprehensive cyber insurance coverage with several key features:
Coverage Highlights
- Multiple towers of coverage ensure breach response costs don’t erode third-party limits
- Comprehensive breach response, first party, liability, and eCrime coverage
- Lower breach response retentions than the policy retention
- Dependent business interruption coverage is not limited to IT vendors
Innovative Quoting Process
Beazley has partnered with Cytora to digitize their email submission channel, automating the underwriting process for quicker response times.
Claims Expertise and Services
- In-house Cyber Services team with IT and legal professionals
- Access to a panel of incident response experts
- Pre-agreed rates with vendors to save on response costs
- Dedicated claims manager as a single point of contact
- Interim claims payments when possible
Risk Management and Pre/Post-Breach Services
- Access to risk management tools and resources
- Pre-breach and post-breach services available through Lodestone Security
- Discounts on security vendor services for policyholders
Underwriting Appetite
Beazley focuses on risks under $35 million in revenue, with preferred classes including auto dealers, educational organizations, banking services, and various other sectors. They do not have an appetite for data aggregators, MSSPs, and MSPs.
Underwriting Requirements
For faster service, submissions should include:
- Completed Beazley applications
- NAICS Code/Industry sector
- Currently valued loss runs
- Confirmation of key security measures (e.g., MFA, anti-virus software, regular backups)
Path to Insurability
Beazley outlines minimum, additional, and optimal security controls that clients should implement to improve their chances of obtaining cyber coverage. These include endpoint protection, MFA for remote access, security awareness programs, and various network security measures.
Accessibility
Beazley’s cyber coverage is accessible through myBeazley, mShift, and email submissions.
This comprehensive cyber insurance offering combines market-leading coverage with risk management services, claims expertise, and a focus on helping clients improve their cybersecurity posture.
Beazley Cyber
Catastrophic Cyber Risk
Beazley Cyber
Addressing Catastrophic Cyber Risk
Beazley outlines its approach to addressing catastrophic cyber risks in their insurance policies. The company has introduced three new endorsements to manage exposure while maintaining coverage for systemic events:
1. War and Cyber War Exclusion: This replaces the previous war and civil war exclusion, providing clearer definitions of war and cyber war. It excludes threats from computer systems used in modern state conflicts but includes a carve-back for insureds who are victims of cyber-attacks but not physically located in the impacted state.
2. First Party Loss Amendatory Exclusion (Infrastructure): This updates the infrastructure exclusion to address utilities and infrastructure outside the scope of coverage. It defines digital and internet infrastructure and financial market infrastructure that are excluded from coverage.
3. Catastrophic Cyber Event Endorsement: This addresses two high-threshold scenarios: extended outages of major cloud service providers exceeding 72 hours and contagion malware in computer operating systems causing major detrimental impacts to a state’s essential services. For covered first-party losses, a 50% sub-limit of liability applies to stand-alone cyber insureds with revenues under 100M (USD/EUR/GBP).
Beazley specifies which policies are affected by these changes, including primary cyber and MediaTech (E&O) policies. The catastrophic event sublimit endorsement only applies to primary cyber policies for accounts below 100M in revenues.
Key points Beazley addresses:
- Compliance with Lloyd’s requirements
- Attribution to state actors in the war exclusion
- Scope of coverage for Internet service providers (ISPs) and cloud service providers
- Definitions of “major detrimental impact” and “essential services”
- Distinction between operating systems and applications for the contagion malware event sublimit
- Application of the 50% sublimit for cloud service provider outages
Beazley emphasizes that these changes are designed to provide clarity for clients and brokers while managing catastrophic cyber risks. It also notes that “major detrimental impact” thresholds are higher than those seen in significant past cyber incidents like WannaCry or SolarWinds.
This document is a comprehensive guide for understanding Beazley’s updated approach to catastrophic cyber risks in their insurance policies, providing detailed explanations of new exclusions, endorsements, and applications.
Beazley Cyber
Cyber & Technology Risk 2024
Beazley Cyber Insurance
Cyber & Technology Risk 2024
Beazley discusses findings from Beazley’s 2024 Risk & Resilience research on the evolving landscape of global cyber and technology risks organizations face.
Key points include:
1. Generative AI is seen as both an opportunity and a threat, with 27% of businesses concerned about tech obsolescence risk and 25% viewing disruptive technologies as their top risk in 2024.
2. There’s a concerning decline in executives ranking cyber risk as their top concern, dropping from 34% in 2021 to 26% in 2024, despite the increasing sophistication and cost of cyber attacks.
3. Cybercrime is projected to cost companies worldwide $10.5 trillion annually by 2025, up from $3 trillion in 2015.
4. The healthcare sector is particularly vulnerable to cyber attacks due to valuable patient data, outdated technology, and limited cybersecurity budgets.
5. The cyber “kill chain” has become more sophisticated, with hackers specializing in different stages of attacks and using legitimate programs to avoid detection.
6. Cyber criminals are weaponizing AI for deepfake attacks and enhanced phishing schemes, making it harder for employees to verify authenticity.
7. To counter evolving threats, Businesses need to adopt “always-on” security strategies, including managed detection and response (MDR) techniques.
8. The document emphasizes the importance of thorough due diligence on third-party vendors, as supply chains have become a focus for cybercriminals.
9. 24% of surveyed business leaders plan to invest in cybersecurity measures in the coming year.
10. The insurance industry plays a crucial role in helping firms navigate the evolving cyber and tech risk landscape by providing actionable guidance and enhanced resilience strategies.
Beazley underscores the need for businesses to remain vigilant, adapt quickly to new threats, and implement comprehensive cyber defense strategies to protect against increasingly sophisticated cyber attacks in a rapidly changing technological environment.
Beazley Cyber
Breach Response
Beazley Cyber
Breach Response
Beazley Breach Response (BBR) is a comprehensive cyber protection insurance solution designed for businesses operating in an increasingly dangerous digital world. The document highlights the growing risks of cyber breaches, emphasizing that it’s not a matter of “if” but “when” a breach will occur.
Key statistics presented underscore the severity of cyber threats:
- 917 million personal records breached in the US since 2005
- 75% of breaches attributable to malware or hacking
- 50 billion devices expected to be connected to the internet by 2020
- 66% of malware attacks are installed via malicious email attachments
- 200,000 computer systems impacted by the WannaCry malware
- IoT devices can be compromised in just 2 minutes
BBR offers a 360° approach to cyber risk management, providing insurance coverage and breach response services. The policy includes:
Breach Response
- Legal and computer forensic services
- Notification services for up to 5 million affected individuals
- Call center services
- Credit monitoring and identity protection
- Public relations and crisis management
First-Party Coverage
- Business interruption from security breaches and system failures
- Cyber extortion loss
- Data recovery costs
Third-Party Coverage
- Information security and privacy coverage up to $15 million
- Media liability
- Regulatory defense and penalties
- Payment card liability and costs
eCrime Coverage
- Fraudulent instruction
- Funds transfer
- Telephone fraud
A unique feature of BBR is the dedicated in-house team, BBR Services, which assists policyholders throughout the incident investigation and breach response process. This team coordinates with forensics experts and specialized lawyers to manage the breach effectively and minimize potential damage.
The policy also emphasizes pre-breach and risk management services. Through the beazleybreachsolutions.com portal, policyholders can access resources for incident response planning, employee training, compliance, and security best practices. Additionally, Beazley has established Lodestone, a subsidiary offering cybersecurity services to enhance clients’ cyber defenses.
BBR’s comprehensive approach sets it apart from other cyber insurance solutions. It provides multiple coverage limits, ensuring that breach response costs do not erode third-party limits. The policy is designed to be streamlined and comprehensive, covering organizations seamlessly in the event of a cyber breach.
Beazley Breach Response offers a holistic solution to cyber risks, combining insurance coverage, expert breach response services, and proactive risk management tools to help businesses navigate cyber threats’ complex and evolving landscape.
Beazley Cyber
InfoSec
Beazley Cyber
InfoSec
Beazley InfoSec is a comprehensive cyber protection policy designed to address the evolving landscape of cyber threats businesses face today. The policy recognizes that cyber breaches are inevitable for companies handling customer data, shifting the focus from “if” to “when” a breach will occur.
Key Features
Coverage
Beazley InfoSec offers a wide range of coverage, including:
- Breach response costs (legal services, forensics, notification, call center, credit monitoring, and crisis management)
- First-party coverage (business interruption, cyber extortion, data recovery)
- Third-party coverage (information security and privacy, media liability, regulatory defense)
- eCrime coverage (fraudulent instruction, funds transfer, telephone fraud)
- Criminal reward
Pre-breach and Risk Management
The policy provides access to:
- Beazley Breach Response (BBR) Services: Offers resources for incident response planning, employee training, and security best practices
- Lodestone Security LLC: Provides strategic and tactical cybersecurity services at negotiated rates
Comprehensive Protection
Beazley InfoSec is designed to protect businesses against a broad range of cyber threats, including:
- Zero-day malware
- Ransomware
- Spyware
- Scareware
- Unintended disclosure
- Human error risks
The policy addresses cyber risks such as business interruption, cyber extortion, loss of critical operational data, and electronic crime.
Claims Expertise
Beazley’s claims team has extensive experience defending clients against privacy class actions and regulatory investigations arising from cyber breaches.
Availability
Beazley InfoSec is available on an admitted basis in some US jurisdictions through Beazley Insurance Company, Inc., and on a surplus lines basis through licensed surplus lines brokers underwritten by Beazley syndicates at Lloyd’s.
Beazley InfoSec offers a holistic approach to cyber protection, combining comprehensive coverage with pre-breach services and risk management tools. This policy is designed to help businesses navigate the complex and dangerous world of cyber risks, providing support before, during, and after a cyber incident.
Beazley Cyber
Cyber & Tech Risk
Beazley Cyber
Cyber Technology Risk 2024
Beazley discusses findings from Beazley’s 2024 Risk & Resilience research on the evolving landscape of global cyber and technology risks organizations face.
Key points include:
1. Generative AI is seen as both an opportunity and a threat, with 27% of businesses concerned about tech obsolescence risk and 25% viewing disruptive technologies as their top risk in 2024.
2. There’s a concerning decline in executives ranking cyber risk as their top concern, dropping from 34% in 2021 to 26% in 2024, despite the increasing sophistication and cost of cyber attacks.
3. Cybercrime is projected to cost companies worldwide $10.5 trillion annually by 2025, up from $3 trillion in 2015.
4. The healthcare sector is particularly vulnerable to cyber attacks due to valuable patient data, outdated technology, and limited cybersecurity budgets.
5. The cyber “kill chain” has become more sophisticated, with hackers specializing in different stages of attacks and using legitimate programs to avoid detection.
6. Cyber criminals are weaponizing AI for deepfake attacks and enhanced phishing schemes, making it harder for employees to verify authenticity.
7. To counter evolving threats, Businesses need to adopt “always-on” security strategies, including managed detection and response (MDR) techniques.
8. The document emphasizes the importance of thorough due diligence on third-party vendors, as supply chains have become a focus for cybercriminals.
9. 24% of surveyed business leaders plan to invest in cybersecurity measures in the coming year.
10. The insurance industry plays a crucial role in helping firms navigate the evolving cyber and tech risk landscape by providing actionable guidance and enhanced resilience strategies.
Beazley underscores the need for businesses to remain vigilant, adapt quickly to new threats, and implement comprehensive cyber defense strategies to protect against increasingly sophisticated cyber attacks in a rapidly changing technological environment.
Beazley Cyber
Cyber Risk Update
Beazley Cyber
Cyber Risk Update
Beazley overviews its cyber risk strategy and market position. Here are the key highlights:
Market Opportunity and Growth
The global cost of cybercrime is expected to reach $23.84 trillion by 2027. The demand for cyber insurance is projected to almost triple over six years, with the market forecasted to grow to $40 billion by 2030. North America remains the most mature region with relatively high penetration levels.
Current Cyber Landscape
- Ransomware frequency remains flat in Beazley’s book
- Increased number of newsworthy cyber events, but no material impact
- Strong competition in the small to medium enterprise segment, especially in Europe
- Pricing environment is adequate for Beazley and reflective of the risk environment
Beazley’s Expertise and Approach
Beazley offers a comprehensive cyber risk management approach, including:
1. Pre-emptive measures: Vulnerability assessments, anti-phishing campaigns, and cybersecurity training
2. Responsive measures: Incident response, legal and crisis management, and claims expertise
3. Adaptive measures: Coverage evolution and risk management training
Risk Management
Beazley manages its exposure through:
- Diverse underwriting across various sectors
- Active management of line sizes (99% of policies have a line size of $10m or less)
- Wordings and limits, including war and cyber war exclusions
- A comprehensive reinsurance program, including the market’s first cyber catastrophe bond program and largest Cyber Industry Loss Warranty
Performance and Outlook
- Beazley has consistently outperformed the market in terms of reported loss ratios from 2016 to 2023
- The company expects continued demand-led growth, particularly internationally
- Beazley emphasizes its integrated risk management approach and diverse, balanced book as key defenses against systemic risk
Innovation in Reinsurance
Beazley has pioneered the use of Insurance-Linked Securities (ILS) in the cyber market:
- In 2023, launched the ‘Cairney’ series, the market’s first cyber catastrophe bonds
- In 2024, introduced the ‘PoleStar’ series, pioneering 144A cyber catastrophe bonds, securing $510 million in multi-year coverage
Beazley highlights its position as a market leader in cyber insurance, emphasizing its risk management strategies, innovative reinsurance approaches, and consistent outperformance in a rapidly growing market.
Beazley Cyber
Catastrophic Cyber Risks
Beazley Cyber Insurance
Catastrophic Risk
Beazley outlines its approach to addressing catastrophic cyber risks in their insurance policies. The company has introduced three new endorsements to manage exposure while maintaining coverage for systemic events:
1. War and Cyber War Exclusion: This replaces the previous war and civil war exclusion, providing more precise definitions of war and cyber war. It excludes threats from computer systems used in modern state conflicts but includes a carve-back for insureds who are victims of cyber-attacks but not physically located in the impacted state.
2. First Party Loss Amendatory Exclusion (Infrastructure): This updates the infrastructure exclusion to address utilities and infrastructure outside the scope of coverage. It defines digital and internet infrastructure and financial market infrastructure that are excluded from coverage.
3. Catastrophic Cyber Event Endorsement: This addresses two high-threshold scenarios: extended outages of major cloud service providers exceeding 72 hours and contagion malware in computer operating systems causing major detrimental impacts to a state’s essential services. For covered first-party losses, a 50% sub-limit of liability applies to stand-alone cyber insureds with revenues under 100M (USD/EUR/GBP).
Beazley specifies which policies these changes affect, including primary cyber and MediaTech (E&O) policies. The catastrophic event sublimit endorsement only applies to primary cyber policies for accounts below 100M in revenues.
The key points addressed in the document include:
- Compliance with Lloyd’s requirements
- Attribution to state actors in the war exclusion
- Scope of coverage for Internet service providers (ISPs) and cloud service providers
- Definitions of “major detrimental impact” and “essential services”
- Distinction between operating systems and applications for the contagion malware event sublimit
- Application of the 50% sublimit for cloud service provider outages
Beazley emphasizes that these changes are designed to provide clarity for clients and brokers while managing catastrophic cyber risks. It also notes that “major detrimental impact” thresholds are higher than in significant past cyber incidents like WannaCry or SolarWinds.
This document is a comprehensive guide for understanding Beazley’s updated approach to catastrophic cyber risks in their insurance policies, providing detailed explanations of new exclusions, endorsements, and applications.
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Beazley Cyber Insurance
Beazley is a global specialist insurance company offering a wide range of products and services. Founded in 1986, it has become a leader in the insurance market and operates in Europe, Asia, and North America. Beazley is known for its expertise in complex and large risks and innovative insurance solutions approach. The company’s core focus areas include marine, property, reinsurance, and specialty lines such as cyber, technology, and management liability.
In the realm of cyber insurance, Beazley offers comprehensive coverage through its Beazley Breach Response (BBR) product. BBR provides first-party and third-party coverage, including breach response services, cyber extortion, data recovery costs, business interruption, and liability protection. Beazley’s cyber insurance offerings are designed to help organizations of all sizes manage and mitigate the risks associated with data breaches, cyber-attacks, and other technology-related incidents. The company’s team of cyber experts works closely with clients to provide risk management guidance, incident response planning, and post-breach support.
What is Cyber Insurance
Cyber insurance is a specialized insurance product designed to protect businesses against the financial losses and disruptions that can arise from cyber-related incidents, such as data breaches, ransomware attacks, and other cyber threats. This type of insurance typically covers costs related to data recovery, legal fees, notification of affected parties, regulatory fines, and business interruption losses. Businesses need cyber insurance to mitigate the financial impact of cyber-attacks, ensuring they can quickly recover and continue operations while minimizing the potential damage to their reputation and customer trust.
What does cyber insurance cover?
Cyber insurance typically covers costs related to data breaches, including data recovery, legal fees, notification of affected parties, and regulatory fines. It may also cover business interruption losses and expenses related to restoring business operations.
Why is cyber insurance important for SMBs?
Small businesses, often with potentially weaker security measures, are prime targets for cyber attacks. Cyber insurance is a crucial tool in managing the financial burden of such attacks, ensuring they can recover quickly and sustain minimal operational disruption.
How is the cost of cyber insurance determined?
Factors such as the size of the business, the industry, the amount and type of data handled, and the company’s existing cybersecurity measures influence the cost of cyber insurance. Higher-risk businesses or those with poor security practices may face higher premiums.
What are the exclusions in a cyber insurance policy?
Standard exclusions in cyber insurance policies include claims related to pre-existing breaches, acts of war or terrorism, and the failure to maintain minimum security standards. It’s essential for businesses to review policy details to understand specific exclusions and limitations.