Canadian managing general agent BOXX Insurance Inc. is about to set up an office in Miami and is looking for carriers to underwrite its cyber coverages outside of Canada.
Toronto-based BOXX announced last week it is expanding to the United States and has hired Hilario Itriago to lead that expansion.
In Canada, BOXX’s insurer partners are Munich Re’s Hartford Steam Boiler subsidiary as well as Lloyd’s Underwriters.
“We’re looking at (HSB and Lloyd’s) and others for international expansion,” BOXX founder and CEO Vishal Kundi told Canadian Underwriter.
While Itriago is working remotely in Miami, BOXX is about to set up a bricks and mortars office in that Florida city, said Kundi.
BOXX’s first-party cyber coverage is said to include reimbursement for the costs of repair, restoration, or replacement if a hacker causes damage to the insured’s websites, programs or electronic data. It also offers third-party cyber coverage.
“From our experience, cyber is a risk to everybody. If you have an email address or you’ve got internet coverage at home, then you are exposed to cyber risk,” said Kundi.
BOXX aims to create “zero paperwork” in distributing cyber insurance coverage to consumer and business clients.
“What we have been able to do is really look at process of selling cyber and make it as simple as possible. how can we reduce the friction for brokers in getting a quote, purchasing and issuing documentation and then collecting payment?” Kundi said in an interview.
With its personal lines coverage, BOXX is aiming for consumers of average income, not just high net worth, said Kundi.
Coverages with Cyberboxx’s home edition include costs to repair, replace, or restore personal electronic data as a result of a cyber attack. It also covers loss of money wrongly transmitted or paid to a third party from an online scam (also known as social engineering), among others.
With its business edition, Cyberboxx offers several coverages, including the cost to manage reputation, costs associated with claims against the client for breach of any privacy law with respect to protection of third-party data, costs to repair, replace, or restore websites or electronic data and money wrongly transmitted or paid to a third party from a deception scheme, among others.
When underwriting cyber, Boxx considers the prospective client’s class of industry, client records, and locations.
Other underwriting questions include headcount, subsidiaries, date of incorporation, past claims or incidents, known circumstances, as well as current information technology risk management and security controls the client has in place, among others.