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
• rganizations 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
• nly 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

• ut 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
• n 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