August 4, 2016 by Canadian Underwriter
Allianz Global Corporate & Specialty (AGCS) has announced the launch of a new cyber and professional liability coverage product designed exclusively for the North American market.
Featuring a streamlined form structure with flexible terms, ACCEPT Protect is the “first of its kind,” offering individual or blended solutions for emerging threats across the cyber, media, technology and miscellaneous errors & omissions (E&O) markets, AGCS said in a press release on Wednesday.
ACCEPT Protect incorporates the strength of the existing Allianz product, Cyber Protect Premium, and adds the option of offering broad coverage for various professional indemnity (PI) exposures as part of the same policy if needed – “a critical capability for the maturing North American market,” the release said, adding that 90% of global cyber policies are written in the United States alone.
ACCEPT Protect policyholders also have access to unique risk management services offered through the AGCS eRiskHub (powered by NetDiligence) portal, as well as a panel of global industry experts to provide services such as security assessments and solutions, proactive mitigation services and full-scale simulated cyberattacks. In the event of a claim, policyholders are covered for a wide range of financial costs, including those incurred to inform customers, perform forensic investigations, data restoration as well as losses resulting from general business interruption, AGCS explained. Another component includes covering the expense of crisis communication counsel needed to safeguard a company’s reputation.
“ACCEPT Protect is a true ‘a la carte’ offering, providing brokers and clients the option of having their cyber and PI exposures covered under one policy,” said Emy R. Donavan, AGCS North American head of Cyber and U.S. head of E&O. “For those that do not need the expanded coverage, they can choose the stand-alone cyber solution. For clients that perform services for others, they can incorporate their professional liability under the same program without having to negotiate a second set of policy terms and conditions. This form’s flexibility allows us to customize coverage for each client, which is unique and groundbreaking.”
The cyber risk of today is complex and ever-changing, with attacks and incidents increasing at exponential rates and costs climbing into the multimillions. According to the latest AGCS Cyber Risk Guide, the annual cost of cybercrime to the global economy is US$445 billion, and the projected annual cost to the world’s largest four economies – the U.S., China, Japan and Germany – is at more than US$200 billion.
“By 2020, the global cyber market is expected to more than triple from the current US$2 billion per annum, with some estimates significantly higher,” said Nigel Pearson, AGCS’ global head of Fidelity, in the release. “As we anticipate the majority of coverage to continue to be written in the U.S., this new offering could not have come at a better time.”
Donavan added that clarity is key when negotiating a contract and “AGCS has responded to the market’s demand for a simplified form that aligns coverage to the unique cyber and professional liability exposures of each client. The innovative construction of ACCEPT Protect simplifies the insurance purchasing process, providing clients with a clear picture of their coverage and greater peace of mind.”
AGCS is the Allianz Group’s dedicated carrier for corporate and specialty insurance business. The company provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: marine, aviation (incl. space), energy, engineering, entertainment, financial lines (including directors’ and officers’), liability, mid-corporate and property insurance (including international insurance programs). Worldwide, AGCS operates in 29 countries with own units and in more than 160 countries through the Allianz Group network and partners. It writes U$9.2 billion in gross premium worldwide annually.