HOW TO INSURE CYBER RISKS? Oulu Industry Summit

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HOW TO INSURE CYBER RISKS? Oulu Industry Summit 2017 6.10.

1 HOW TO INSURE CYBER RISKS? Oulu Industry Summit Panu Peltomäki Liability and Financial Lines Practice Leader Marsh Oy

2 Marsh A Leader in Quality, Scope, and Scale

GLOBAL RISKS OF CONCERN TO BUSINESS Results from the World Economic Forum Executive Opinion Survey 2017 Top 10 global risks for doing business Large Cyber attacks (by rank order)

3 GLOBAL RISKS OF CONCERN TO BUSINESS Results from the World Economic Forum Executive Opinion Survey 2017 Top 10 global risks for doing business Large Cyber attacks (by rank order) North America #1 Europe #5 UK #3 Germany #1 (Data fraud/theft #5) Poland #5 Switzerland #1 (Data fraud/theft #3) United States #2 (Data fraud/theft #5) Canada #1 4 October

4 All companies face cyber risks! Cyber examples across Europe

5 DEFINING YOUR RISK HOW IS CYBER RISK IMPACTING YOUR ORGANIZATION? Leading Cyber Risks Cost of Cyber Breach? Operational Disruption Regulatory Compliance Employee Exposures Lawsuits and Reputational Harm What are you doing to mitigate risk at each touch point across your third party suppliers/providers? Are you ready for GDPR? What changes have you made recently in how you manage and protect sensitive data? Value of Personal Data The human element, errors and accidents Do you have a response plan in the event of a breach? How are you mitigating the potential damage? Regulatory concerns?

6 Introduction What is cyber risk & IT risk? What is your IT network? à External à Internal Malicious Attacks Hardware Software Accidental Potential affected networks: The insured s An outsourced service provider Data Operational impact Confidentiality (incl. privacy) And /or Integrity And /or Availability Assets Civil fines & penalties Loss of turnover Financial impact Additional Costs 3 rd Party Ransom Liability and Claims Total cost of cyber event? 5

7 CYBER RISK INSURANCE COVERAGE 6 October

8 What is cyber insurance Triggers A series of coverage modules or insuring agreements provided singularly or in combination within a single policy that addresses specific technology based risks Enhanced Cyber insurance policies normally contain three main triggers; 1. Security failures: loss caused by a malicious acts / computer security failure, including unauthorized access to the insured s computer systems, DDOS attacks, virus, malware, phising, deep-linking, framing, web scraping, harvesting, data extraction. 2. System failures: any unplanned or unintentional outage, interruption or suspension of the insured s computer systems or an outsourced service provider s computer systems, i.e. human errors and accidents. 3. Data Breach: failure to properly handle, manage, store, destroy or otherwise control personally identifiable information or corporate information. 7

& Network liability, defense costs Personal data breach, incident response

9 What is cyber insurance? What can be covered through cyber insurance? Network business interruption & Extra Expenses Privacy Brach & Network liability, defense costs Personal data breach, incident response costs Data recovery and restoration Civil & Administrative Fines Cyber extortion 8

10 How should my Cyber Insurance policy look like? Gap analysis do my current insurances already cover some cyber risks and to what extent? Coverage Insurance to meet your identified cyber risks Limit sufficient to cover the estimated financial impact and consequences Deductible frequency vs. severity Territorial Scope where are your customers Covered networks: The insured s An outsourced service provider Service elements Do I need (IT Forensics, legal, PR)? 4 October

Starting point is to recognize business critical cyber risks and their financial impact to your

11 Key Takeaways Cyber insurance is key part of company s cyber risk management process - no such thing as perfect IT security! Starting point is to recognize business critical cyber risks and their financial impact to your company Cyber insurance is highly tailorable to meet your cyber risks, no one policy fits all It is still buyers market: Large capacity Reasonable premiums Tailoring options 10

12 Panu Peltomäki Liability and Financial Lines Practice Leader Mobile: Mail: panu.peltomaki@marsh.com

Cyber & Privacy Liability and Technology E&0

Cyber & Privacy Liability and Technology E&0 Risks and Coverage Geoff Kinsella Partner http://map.norsecorp.com http://www.youtube.com/watch?v=f7pyhn9ic9i Presentation Overview 1. The Cyber Evolution 2.