General Insurance Article - Comment from JLT Specialty on the Abta data breach


Commenting on the Abta cyber incident, Sarah Stephens, Head of Cyber at JLT Specialty, said:“In an age of IT outsourcing, where information is stored on a server or through a third party vendor, as we have seen in the case of Abta, companies are at greater risk of experiencing a data loss or cyber incident on a large scale.

 “The raft of additional expenses following a data breach, most notably for consumer or member notification, forensic investigation, public relations, and other crisis management expenses, highlight the need for cyber insurance. Traditional insurance products aren't likely to respond to the potentially significant incident response costs in this case, which may extend far beyond Abta itself. A critical element of cover in cyber policies is the policy responding to the insured’s costs and liability even if a vendor, such as a third party web developer and hosting company, is the source of the security breach or technology failure. Due to incidents like this, scrutiny of third party contractors’ cyber security systems have increased and many companies have tightened the level of required controls.
 
 “In reality, these cyber-attacks will continue and we’re going to see more hacks in increasing volume and severity. Companies can no longer view cyber insurance as merely optional, but rather a critical weapon in their cyber risk management arsenal.”
  

Back to Index


Similar News to this Story

Skiers should ensure they are covered for piste of mind
The Association of British Insurers (ABI) has revealed the true cost of winter sports-related claims, varying from £1,000 to as much as £90,000. More
PRA consultation paper on changes in insurance reporting
In this consultation paper (CP), the Prudential Regulation Authority (PRA) proposes a number of regulatory reporting changes designed to reduce the bu
Employers admit not utilising all Group Risk products
Only 32 per cent of employers say they make regular use of all the extra support within group risk products, according to new research* undertaken by

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.