An Overview of Cyber Insurance at AIG

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1 An Overview of Cyber Insurance at AIG Michael Lee, MBA Cyber Business Development Manager AIG 2018 Brittney Mishler, ARM Cyber Casualty Underwriting Specialist AIG

2 Cyber Insurance It s a peril, not a product Cyber..Insurance Cyber Cyber Insurance should really mean an entire collection of insurance products, not a singular one. Broadly, Cyber is a peril that could have many impacts: loss of intangible property (data), business interruption, liability, bodily injury, or even loss of real property. The specific types of events which constitute a cyber peril include, but are not limited to, things like: unauthorized access denial of service attack data breach unauthorized use bricking 2

3 Cyber Insurance Coverage Financial Loss (Non-Physical) Security & Privacy Defense costs and damages if the business causes a breach of personal or corporate data Defense costs and damages if the business contaminates someone else s data with a virus Event Management Costs of notifications, PR, and other services to manage/mitigate cyber incident Expenses to restore, recreate, or recollect lost electronic data Forensic investigations, legal, and ID monitoring for breach victims Network Interruption Loss of net profit and extra expense as a result of material interruption to the insured s network caused by a security breach Ransom payments to third parties incurred in terminating a security or privacy threat Cyber Extortion 3

4 Cyber Insurance Coverage Tangible Loss (Physical) Expanded Business Interruption Covers business income loss and expenses to reduce loss as a result of a breach involving property damage First Party Property Damage Covers physical loss or damage to insured property as a result of a breach Third Party Bodily Injury and Property Damage Covers bodily injury or damage to others property caused by a breach Products & Completed Operations Covers bodily injury or property damage caused by a breach of a computer system that is part of an insured s product 4

5 More than just Risk Transfer Insurance is more than risk transfer; also consider: Loss prevention/partnership ( pre-breach ) Service at the time of an incident/claim ( post-breach ) AIG stands out for both: Cyber Risk Consulting practice continues to improve client s cyber maturity after underwriting/binding; CyberEdge partners provide training, technical controls, etc AIG Cyber Claims has a 24/ number so as to respond immediately to tenders, and has the experience of handling for over 17 years 5

6 CyberEdge Pre-Loss Complimentary Services Employee elearning- Employee awareness, training, and compliance Customizable, web-based training and compliance platform to help reduce the single largest risk to an organization: human error. Blacklist IP Blocking & Domain Protection Powered by global threat intelligence Stops criminal activity on your network by blocking bad DNS and IP traffic inbound or outbound. Infrastructure Vulnerability Scan Identification of high risk infrastructure vulnerabilities Select parts of your internet facing infrastructure to have experts examine and identify any vulnerabilities that are open to potential exploits by cyber criminals. Legal Risk Consultation Review and strengthen incident response capabilities Two hours with an expert on incident response planning, regulatory compliance, security awareness, or privacy training. Forensic Risk Consultation Organizational preparedness for different threat scenarios One hour with a forensic expert on what an organization needs to think about and prepare for different threat scenarios. Public Relations Risk Consultation Crisis communication plan best practices and preparation One hour with an expert to prepare and plan for your organization to handle potential scenarios if one should occur. CyberEdge Hotline 24/7/365 cyber hotline Experts immediately available at CYBR-345 will review indicators of attack or indicators of compromise to triage potential cyber events. Insurance Portfolio Diagnostic Cyber as a peril analysis against insurance portfolio Experts review your entire property and casualty portfolio to determine how it is anticipated to respond to the spectrum of cyber predicated financial and tangible losses. Cybersecurity Information Portal Online Access to cybersecurity information 24/7 365 access to current cybersecurity information. 6

Cyber Underwriting - Client Generated Reports Summary Assessment Report High level feedback from cyber risk model based on smart application input given to applicants looking for a quote.

7 Cyber Underwriting - Client Generated Reports Summary Assessment Report High level feedback from cyber risk model based on smart application input given to applicants looking for a quote. Available to applicants even if they don t bind a cyber policy with AIG. Executive Summary Report Comprehensive report given to applicants that bind Cyber coverage with AIG. AIG Cyber Risk Consulting will conduct a consultative onboarding review of executive summary report tying in CyberEdge pre-loss services. 7

8 Cyber Model Reporting Model Output - Key metrics How well architected is the security strategy to known threats? What does our risk look like after we take into account mitigating controls? How likely are we to experience one of these events? 8

2018 Trends and Considerations Cyber Extortion #1 security issue

against Internet of Things devices (IoT s) in 2017 Trillions in

to be prepared Billions of Data Records exposed in 2017 Insecure

be the weakest link in an organizations security program.

9 2018 Trends and Considerations Cyber Extortion #1 security issue clients are dealing with Substantial Growth in cyber attacks against Internet of Things devices (IoT s) in 2017 Trillions in annual cost of cyber crime Less than 1/3 Of organizations claim to be prepared Billions of Data Records exposed in 2017 Insecure Cloud Databases #1 Source of Data Breaches Employees Continue to be the weakest link in an organizations security program. In 2017, 978 million people in 20 countries were affected by cybercrime. 9

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions.

10 American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at YouTube: LinkedIn: AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds. The data contained in this presentation are for general informational purposes only. The advice of a professional insurance broker and counsel should always be obtained before purchasing any insurance product or service. The information contained herein has been compiled from sources believed to be reliable. No warranty, guarantee, or representation, either expressed or implied, is made as to the correctness or sufficiency of any representation contained herein. American International Group, Inc. All rights reserved. 10

Add our expertise to yours Protection from the consequences of cyber risks

CyberEdge THIS INFORMATION IS INTENDED FOR INSURANCE BROKERS AND OTHER INSURANCE PROFESSIONALS ONLY Add our expertise to yours Protection from the consequences of cyber risks What is CyberEdge? 2 CyberEdge