PRIVACY AND CYBER SECURITY

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Richard Heath
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1 PRIVACY AND CYBER SECURITY Presented by: Joe Marra, Senior Account Executive/Producer Stoya Corcoran, Assistant Vice President Presented to: CIFFA Members September 20,

2 Disclaimer The information in this session is provided for general overview purposes only and are those of the author and do not necessarily represent the views of Arthur J. Gallagher Canada Limited or any of the Arthur J. Gallagher Group of Companies. The information presented is not nor does it purport to be, a complete or exhaustive analysis of legal liability exposures, risks, coverage terms and conditions, all of which may impact coverage 2

3 AGENDA 1. About Arthur J. Gallagher Canada Limited 2. Why Chubb Insurance Company of Canada 3. Why is Cyber Liability Insurance Essential 4. Cyber Coverages 5. Limits and Indication of Premium 6. Network Security Awareness 7. Questions & Answers 3

4 Arthur J. Gallagher - Our Core Pillars Our Culture Our Expertise Client Service Carrier Relationships World s Most Ethical Company The Gallagher Way Market Leadership Regional Leadership Industry Leadership 25 offices across Canada 150 countries worldwide Benefit from our global scale 4 th largest insurance broker globally J.D. Power Award 4

5 Why Chubb Insurance? Chubb has an AM Best Rating of A++ (Superior) Chubb has been Insuring Cyber Liability Risks since 1998 and has the expertise in handling claims for this class of business Chubb operates in 54 countries, with approximately 30,000 employees serving a diverse group of clients worldwide Chubb is market-leading in customizable solutions to address clients unique needs, regardless of size, industry or type of risk 5

Various Types of Data That Have Been Involved in Incidents Include: Driver s license numbers First and last names Social Insurance numbers Home addresses Tax ID numbers Credit card information CVV

6 Various Types of Data That Have Been Involved in Incidents Include: Driver s license numbers First and last names Social Insurance numbers Home addresses Tax ID numbers Credit card information CVV numbers Phone numbers Diagnosis codes Dates of birth Travel information Diagnostic information addresses Debit card information Bank information Health symptoms Employee payroll information Passport number and contact information Banking information Salary information Health insurance numbers Employee ID numbers Mobile banking username and passwords Source: Chubb Insurance Company of Canada 6

7 No Matter How Good Your IT Department Is 7

8 Cyber Claims Trends as of February 2017) Source: Chubb Insurance Company of Canada 8

9 Canadian Loss Data Average cost of breach in Canada - $5.78 mm Cost to replace lost client record - $255 per record Frequency of cyber attacks increasing Costs to resolve a breach rising consistently Lack of an incident response plan led to higher corporate costs overall Losing customers is a major risk for companies who suffer a breach Average network downtime following an attack is 5 days *Source: Ponemon Institute Study on Global Data Breaches, June

10 Why Cyber Insurance? No one is immune While being cybersecurity ready can mitigate your loss, a comprehensive insurance policy can keep your business on stable financial footing Insurance protects your organization s balance sheet It will provide the financial security and the services required to handle a cyber incident 10

11 Duty of Care Directors and officers must act with good faith and in the best interest of the organization. They have a legal duty to protect the information that they are entrusted with Do Directors and Officers have an understanding of their exposure? Are they certain they are managing that risk as effectively as possible? Does the organization have the financial resources to fully recover from a cyber event? 11

Interruption Restoration Cyber Crime Privacy Liability +Regulatory +

12 Cyber Insurance Incident Response First-Party Third-Party Coach Services Forensics Notification Credit Monitoring Public Relations Extortion Interruption Restoration Cyber Crime Privacy Liability +Regulatory + Payment Card Network Liability Media Liability Source: Chubb Insurance Company of Canada 12

13 Incident Response Coach Services A breach coach is the first responder along with the claims/legal professional Forensics A forensic investigation is necessary to determine what occurred and how to repair the damage Notification Data breach notification is required to customers and other affected parties Credit Monitoring This is necessary to assist in detecting signs of identity theft including fraudulent credit activity Public Relations A PR consultant is required to offset reputation loss and re-establish trust of customers and other affected parties 13

14 First-Party Extortion Cyber extortion and ransomware refers to a criminal threat to release sensitive information or bring down a network Interruption The downtime including the monetary losses the company experiences during the period of recovery Restoration Costs incurred to replace, restore or recollect data which has been corrupted or destroyed as a result of a network security failure Cyber Crime Also known as Social Engineering Fraud whereby a criminal purports to be a vendor, client, executive or some other legitimate party and convinces an employee to act voluntarily to perform a task such transferring funds or part with money 14

15 Third-Party Privacy Liability Losses arising out of the company s failure to protect sensitive personal or corporate information in any format Regulatory Regulatory proceeding brought by a government agency alleging the violation of any federal or provincial privacy legislation Payment Card Companies that are processors of major credit cards such as Visa, MasterCard or American Express are obliged to be PCI-DSS compliant Network Liability Losses arising out of the company s liability arising out of the failure of a network security impacting others Media Liability Coverage for infringement of copyright/trademark, invasion of privacy, libel, slander, plagiarism by the company from content on it s website 15

16 Limits and Indication of Premium Gross Revenue Limit Retention Sub-Limits Premium 0 - $2,000,000 $1,000,000 $2,500-$5,000 $250,000 Payment Card $2,100-$2,350 $10,000(Soc. Eng.) $ 50,000 Social Eng. $2,000,000 to $1,000,000 $2,500-$5,000 $250,000 Payment Card $2,990-$3,110 $3,000,000 $15,000(Soc. Eng.) $ 50,000 Social Eng. $3,000,000 to $1,000,000 $2,500-$5,000 $250,000 Payment Card $3,480-$4,110 $5,000,000 $15,000(Soc. Eng.) $ 50,000 Social Eng. 16

17 Chubb Cyber Services Chubb believes that being ready to respond will limit the losses when a cyber incident occurs. Therefore, it is important to complement superior protection by offering enhanced benefits for policyholders to address cyber exposures (pre-event) and recover from cyber events (post-event) 17

18 Chubb Cyber Services Loss Mitigation Services help limit cyber exposures before a loss occurs Password Defense Secure password manager app to help create and use stronger passwords across the web Online Cyber Education Two online courses available to all employees to help improve individual cyber awareness Signature Assessments Five unique assessment services to help quickly gauge and mitigate key exposures Incident Response Plan Protected Data Access Phishing Awareness Network Vulnerability Scan Security Monitoring Source: Chubb Insurance Company of Canada 18

19 Chubb Cyber Services Partner Network - help address ongoing cyber security Solutions to help protect and monitor your endpoints against malware Solutions to help protect against insider threats and ransomware Solutions to help encrypt important information stored both internally and externally Solutions to help maintain healthy enterprise security operations Solutions to help assess and maintain compliance with PCI and other requirements Source: Chubb Insurance Company of Canada 19

20 CONCLUSION QUESTIONS & ANSWERS THANK YOU 20

JAMES GRAY SPECIAL GUEST 6/7/2017. Underwriter, London UK Specialty Treaty Beazley Group

JAMES GRAY SPECIAL GUEST 6/7/2017. Underwriter, London UK Specialty Treaty Beazley Group SPECIAL GUEST JAMES GRAY Underwriter, London UK Specialty Treaty Beazley Group All 6 Beazley Lloyd's Syndicates are rated A (Excellent) by A.M. Best Admitted Carrier in the US Beazley Ins Co rated A (Excellent)