Trade bodies collaborate on cyber insurance guide

Knowing where to start is often the big challenge in getting the ball rolling for any endeavour or initiative… in the world of cyber, where not everyone has a solid grasp of the risks, a joint report has been published to offer firms top-notch guidance.    

A collaborative effort by European industry bodies BIPAR (European Federation of Insurance Intermediaries), FERMA (Federation of European Risk Management Associations), and Insurance Europe, the nearly 30-page guide is aimed at helping organisations that are considering taking up cyber insurance. In addition, it can assist businesses to better manage their cybersecurity risks.   

Aon and Marsh also contributed to the “Preparing for cyber insurance” report, which was launched at the 2018 European Risk Management Seminar in Antwerp and was released to coincide with EU cybersecurity month.

“An effective discussion on cyber insurance, based on a high level of understanding between an insurer/intermediary and the prospective insured, is essential to tackle cyber risks effectively,” it read. “Collecting appropriate internal information can play a huge role in achieving this.”

The guide not only outlines how companies interested in accessing cyber insurance can best prepare for discussions with intermediaries and providers but also offers tools to help firms evaluate cyber insurance propositions and how they may translate in practice.

“In the cyber risk and cyber insurance market, which is a new and quickly changing environment, this brochure gives a general indication of the complexity and provides a starting point for a good dialogue about how insurance intermediaries can assist clients in this specific area,” said BIPAR chair Ulrich Zander.

Michaela Koller, director general of Insurance Europe, hopes the material will help businesses in assessing the level of protection they require, with a cyber policy among the various measures that enhance a company’s resilience.

“This guide is the first of its kind, and is a joint effort by risk managers, insurers, and intermediaries to help organisations effectively discuss their cyber insurance needs,” noted Jo Willaert, president of FERMA. “Our ambition is to support insurance buyers in selecting the insurance solutions that are the best adapted to their needs.”