Amid Evolving Cyber Risks 

[Oct 2016]: As cyber risk continues to evolve beyond threats to personally identifiable information, Aon Risk Solutions is introducing Aon Cyber Enterprise Solution, a first-of-its-kind property/casualty and Internet of Things insurance policy that offers comprehensive and integrated enterprise-wide coverage against cyber risk.

Organisations are increasingly dependent upon technology and information assets to increase efficiency and revenue. As a result, the risk characteristics of the organisation continue to evolve to include new risks, such as system failures, third-party attacks, internal mistakes and malfeasance.

“Technology-enabled business models are core to organisations in all industry segments,” says John Bruno, Aon’s chief information officer and executive vice president of enterprise innovation. “Aon is committed to delivering innovative solutions to help clients understand ever-changing risks like cyber in a coordinated manner so they can improve their defensive positioning and offensive response.”

Aon Cyber Enterprise Solution is available through the Aon network globally and offers an integrated cyber solution for property, products liability, supply chain risk, technology platforms and information/physical assets, in addition to defences against privacy and security liability.

Practitioners across Aon, including representatives from risk, technology, actuarial modelling, incident response and security, collaborated to develop this solution. The Aon team has been successful in bringing a number of clients across industries to market on the Aon Cyber Enterprise Solution form.

“The impact of cyber risk has fundamentally changed,” says Stephanie Snyder, Aon Risk Solutions cyber practice sales leader. “Aon Cyber Enterprise Solution helps our clients think about cyber risk differently to address each organisation’s holistic cyber exposures under one policy.”

Aon Cyber Enterprise Solution can address emerging areas of cyber risk and related regulation, including:

• Comprehensive limit approach – up to USD 400 million in capacity per policy;
• Aon proprietary language – single policy form;
• Property damage arising out of a network security breach;
• Products liability coverage to address Internet of things exposures;
• Business interruption and extra expense coverage arising out of a systems failure;
• Contingent network business interruption for IT vendors and the supply chain;
• Cyber terrorism coverage;
• European Union General Data Protection Regulation fines and penalties, where insurable;
• Privacy/security liability and event expense coverage;
• Media liability and technology errors and omissions by endorsement.

Christian Hoffman, Aon Risk Solutions cyber practice leader, added, “While cyber policies cover personally identifiable information exposures, such as those faced by retailers, hospitality, financial institutions and healthcare, we are excited to broaden the scope of coverage to help clients across all industries develop a more comprehensive approach to cyber risk, including physical property damage, products liability, business interruption or supply chain disruption.”

Aon has worked with markets in the U.S., London, Europe and Bermuda, including many of the world’s leading global insurance carriers, to support the Aon Cyber Enterprise Solution policy form and approach. The policy form has applicability across all industries, so each risk will be considered independently and on its own merits, taking into account an organisation’s specific cyber exposures and risk mitigation, including cyber security posture, incident response/disaster recovery planning and cyber resilience. Coverage is subject to individual policy terms and conditions.