cyber risk
TRANSCRIPT
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Cyber RiskPatrick CruikshankNorthbridge Insurance
A growing concern in Canada
69% of companies reported a cyber attack
51%of companies had sabotaged data with a moderate to major impact on business
30% of attacks where on businesses with less than 250 employees
Source: Symantec Internet Security Report (2013 & 2014)
What are Cyber Exposures?
Common causes of harmHacking
Human error
Denial of service
Malware
Extortion
InfringementOnline
defamation
Privacy incidents
Theft
Phishing
Spear-phishing
Waterholes
ResultsBusiness
Income Loss
Data Recovery Expenses
Incident Response Expenses
Reputational Damage
Opportunity Costs
Class Action Lawsuits
D&O Claims
Investigative Costs
Fines & Penalties
Is there not already coverage?
Property:• Data Problem
CGL:• Financial loss• Loss or corruption
of electronic data
Property & CGL coverage gaps
What’s the coverage?
Cyber Risk exposures
Privacy Breach Network Security
Breach
Internet Media Liability
• Viruses that corrupt data or deny system access
• Transmitting a virus that corrupts someone else’s data or denies system access
Network security breach
• Personal injury from information posted on your website
• False advertisement posted on your website
• Plagiarized information on your website
Internet media liability
• Non-public information
• Information belonging to employees, clients or customers
• Digital or hard copy data
Privacy breach
Introducing IDT911, Privacy Breach Experts
Why IDT911?
Double-Click to Insert Picture Double-Click to Insert Picture
Double-Click to Insert Picture
600,000Businesses rely on
IDT911 for data risk management
services
45%P&C insurance
marketplace use IDT911
17.5MHouseholds turn to IDT911 for fraud resolution services
Breach response services
Breach counseling
Crisis management
Remediation planning
Notification assistance
Evidentiary support
Canadian Marketplace
Real cases
Lost USB
Hacking
Stolen Laptop
Lost USB
Breach caused by a Vendor
Home Depot Canada ‘assessing’ possible Customer data breach
Privacy breach accessed 20
patient records: Eastern Health
$412-million lawsuit launched against Toronto hospital over privacy breach
Laval transit card disposal
breaches privacy
Privacy watchdog to probe UVic in security breach
Toronto woman sues Rogers after her affair is exposed
Hard drive disposal
Document disposal
Employee Error
Unauthorized Access
NRC writes companies
potentially affected by data
breach
Student loan data on half a million people was left unsecured: watchdog
Privacy office finds Medicentres failed to protect patient data on stolen laptop
Canadian Online Retailer suffers Data
Breach - Waits entire month before
telling customers
Privacy breach at Rouge Valley
hospital involves thousands of new
mothers
Real cases
Staples investigating potential
security breach
• BundleSmall business (<$10MM)No websalesMinimal US salesLow hazard risksBasic protection
• CustomLarger risks (<$50MM)Global exposuresHigher hazard risksWebsales
Sectors by Appetite Weight
M&RHESSCBSC&C
Target Customers
SME Business
Are these industries at risk?
Construction• Basic Info• Payment info• Business
model
Retail• Basic Info• Application
info• Credit reports
Trucking• Basic Info• Location
Tracking / Telematics
• Background Check
• Credit Check
Manufacturing• Basic Info• Intellectual
Property• Access to
Suppliers and Vendors
Northbridge Insurance’s Cyber Risk
Incident Response Expense
Digital Asset Expense
Business Interruption
E-Commerce Extortion Expense
First Party coverage
Network Security & Privacy Liability
Internet Media Liability
Regulatory Proceeding Expense
Third Party coverage
Two Solutions
BUNDLE
CUSTOM
Cyber Risk bundle qualifications
Receipts up to $10,000,000
US receipts up to 50%
Current Firewall and anti-virus
Monthly data back-up
No web based receipts
No previous breach claims
Policy Aggregate $100,000 DeductibleFirst Party
a Breach Incident Response Expenses Coverage 100,000 2,500
b Digital Asset Expense Coverage 50,000 2,500
c Business Income Loss 50,000 48 hours
Third Party
a Network Security and Privacy Liability Coverage 100,000 2,500
b Internet Media Liability Coverage 100,000 2,500
Cyber Risk bundle $100,000
Insuring Agreement Maximum limitGeneral Aggregate $2,000,000
a Breach Incident Response Expenses Coverage 1,000,000
b Digital Asset Expense Coverage 500,000
c Business Income Loss 500,000
d E-Commerce Extortion Coverage 100,000
Third Party
a Network Security and Privacy Liability Coverage 2,000,000
b Internet Media Liability Coverage 2,000,000
c Regulatory Proceeding Coverage 100,000
Custom Cyber Risk coverages
LOCATION SIZE INDUSTRY ETHICS
Top MisconceptionsSmall and medium sized risks are relatively safe from cyber risk.Truth: They are not; hackers do not discriminate;
human error does not discriminate.
Our Cyber Risk Solution
A full first and third party solution
Easy to sell & affordable bundles
Value add of IDT911
Quoted by sector underwriters
Questions?