Global broker Aon has today revealed a new cyber risk solution aimed at softening the impact of upcoming European Union regulations that will tighten data protection laws for the region.
EU Data Protect is a newly-created product for organisations ahead of the EU General Data Protection Regulation, or GDPR – a set of “sweeping changes” that will come into force in 2018 for every company operating in the EU, Aon said.
The EU Data Protect plan will help organisations prepare for the new regulations, which will include stronger enforcement powers and higher fines, as well as helping protect them against some of the potential financial impacts of the regulation.
The GDPR – which comes into force on May 25, 2018 – will introduce stricter requirements on organisations processing personal data, a mandatory data breach notification regime, enforcement powers for regulators such as fines of up to 4% of annual worldwide turnover, and strengthened audit and investigatory powers.
Aon’s Protect plan will include a readiness assessment – to assist in identifying gaps in compliance with the GDPR, impact analysis – a modelling system for the potential financial impact, an insurance endorsement and incident and claims response.
Renette Pretorius, cyber practice leader at Aon’s Global Broking Centre in London, said the GDPR represents a significant regulatory challenge for firms that do business in the EU.
“Its mission is to give citizens back the control of their personal data and equip regulators with sufficient enforcement powers to address the evolving digital landscape and tougher privacy challenges – a change heavily felt across many companies,” she said. “All businesses operating in the EU, no matter where they are located, should prepare for the impact of this regulation.”
Andrea Garcia Beltran, the Centre’s EMEA cyber sales leader, added: “Organisations that do not identify and address compliance gaps in their marketing practices, data handling and data breach response protocols do so at their own peril.
“Business interruption losses are appropriately ‘front of mind’ for many EMEA organisations, but potential liability of up to 4% of an organisation’s turnover must be added in to the risk management thought process.”
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