Welcome to the second edition of JLT Specialty’s cyber newsletter.
Main features in this issue:
The domino effect of the new biggest health information breach
Is this the cyber hurricane that underwriters have been concerned about for years? It’s estimated that up to 250,000 other companies are affected by the recent breach at Anthem, which in practical terms could lead to thousands of paid cyber claims and a massive subrogation effort from the insurers who pay.
Cyber triggered physical damage
Many in the cyber security world are referring to 2014 as yet another “year of the breach” with high profile events occurring at Target, Staples, Home Depot and Sony among others. These incidents all demonstrated the ongoing ability of hackers to infiltrate security systems (no matter how strong) and highlighted the massive costs and disruptions that result from a cybersecurity incident in which data is stolen. While cyber-attacks continue to be a significant exposure for retailers, healthcare companies, and financial institutions (all of whom have large amounts of personally identifiable information), these companies do have the ability to transfer this risk via cyber insurance policies.
Still waiting for the new EU Data Protection Regulation, but start getting ready!
Once upon a time in the not too distant past we were assured that the EU Data Protection Regulations would be agreed in 2014. However, 2014 came and went and although we saw a significant milestone with the partial general agreement in March 2014, we still didn’t have the three parties’ agreement required to finalise the regulation. We do have a better idea of what businesses need to prepare for. It’s important to remember that this process may feel long, but in the context of EU law-making, it’s actually pretty normal.
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