As the number of highly publicized cyber attacks has increased in recent years, the demand for cyber security insurance has escalated rapidly, with industry analysts forecasting a growth of 150 percent in the next five years.1However, large corporations are finding it increasingly difficult to secure the cyber security insurance protection they need. To address this growing need, ACE Group announced the launch of ACE’s Global Cyber Facility, which goes beyond standard risk transfer by incorporating a comprehensive risk management solution into a single policy purchase.
ACE’s Global Cyber Facility provides up to $100 million of primary capacity. This innovative solution incorporates integrated loss control services provided by industry-leading cyber security experts, a proprietary application process designed to assess an organization’s current risk profile, a specialized policy form, comprehensive claims management, and ongoing, detailed analysis to help organizations detect potential weaknesses that could give rise to future cyber attacks — all within a single policy purchase and backed by the financial strength of ACE’s A++ balance sheet. ACE’s Global Cyber Facility is available to eligible companies worldwide. This solution is the first of its kind in the industry and is exclusive to ACE.
“Boards recognize that cyber insurance is a priority, but they also know that risk transfer isn’t enough. Risk managers are asking for a comprehensive strategy that helps them assess their cyber and data privacy risk, incorporates appropriate loss control services to mitigate losses before they happen, provides access to post breach services to assist them in the event of a breach, and offers higher limits to meet their coverage needs,” said Toby Merrill, Division Senior Vice President, Global Cyber Risk Practice, ACE Group. “ACE is uniquely positioned to meet this need. We have handled data breach incidents for more than 15 years and were the first in the market to introduce both the Data Breach Team and Loss Mitigation Services, giving our insureds access to the expert resources they need to both mitigate risk before it happens and quickly respond to a breach when it occurs. We’re excited to be able to use this expertise and leverage our relationships with globally recognized cyber defense organizations to once again lead the market in meeting the critical needs of organizations worldwide.”
ACE’s Global Cyber Facility offers more than just risk transfer. Key features include:
- Increased primary capacity to meet the needs of large insureds, with up to $100 million per insured for qualifying risks globally.
- ACE will act as the single point of contact for all Global Cyber Facility components including underwriting each risk, evidencing global coverage, managing the claims process, and coordinating loss control services both pre and post incident.
- The integrated loss control service offering includes the following:
- Core Security Defense, which incorporates a review of the implementation of and compliance with industry standard security controls for protecting information.
- Enterprise Risk Management, which measures the completeness of vision and cultural awareness of information security and privacy at the Board level.
- Incident Response Capabilities, which measures the detection and response capabilities in the event of a network security or confidential data compromise.
- Business Interruption Calculation, which calculates the financial outcome based on the organization’s ability to withstand and recover from interruptions in network operations.
- Data Analytics and Industry Metrics, which provides an “outside looking in” perspective on cyber attacks. Provided on an ongoing basis throughout the life of the policy, this analysis combines data from multiple vendors with ACE’s own proprietary claims data, giving insureds insight into current threats that could lead to a compromise of the network or a data breach.
These five pillars combine to support a broad cyber risk framework, which was created working with industry-leading cyber security experts to analyze data and identify the core strategies that can help organizations mitigate future risk.
- An enhanced underwriting process that incorporates the expertise of our vendors from the application process through the binding of each policy.
- A specialized policy form designed exclusively for Global Cyber Facility insureds that incorporates the full breadth of ACE’s cyber security offering.
- Experienced claims management by ACE’s expert claims staff, with the ability to access ACE’s Data Breach Team, if preferred.
The loss control services offering incorporates five core strategies, with one or more services provided by BitSight, FireEye, Navigant, NetDiligence, Promontory Financial Group, and/or Verizon Enterprise Solutions. Product highlights are summaries only; please see the actual policy for terms and conditions. All products and services may not be available in all instances. Product offerings may vary by ACE location.
1Insurance 2020 & beyond: Reaping the dividends of cyber resilience (2015)https://www.pwc.com/gx/en/insurance/publications/assets/reaping-dividends-cyber-resilience.pdf.
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