PRODUCT: Cyber Enterprise Risk Management and DigiTech Enterprise Risk Management
COMPANY: Chubb
BEST RATING: A++ (Superior)
AVAILABILITY: Coverage is available on an open-brokerage basis.
FOCUS: On average, Chubb handles claims involving more than two cyber incidents every day. Due to early intervention, only 15% of the incidents Chubb clients experience lead to third-party claims. But the threat landscape is still vast and comprehensive—and the next generation of cyber insurance needs to keep up.
“We need to surround our clients with protection from all directions, which is why we set out to create an enterprise risk management approach in a box that can be easily purchased and deployed,” says Patrick Thielen, senior vice president of Financial Lines at Chubb.
The result? Two new policy forms: Cyber Enterprise Risk Management (Cyber ERM) and DigiTech Enterprise Risk Management (DigiTech® ERM). The core of the products is the same, but DigiTech® ERM is specifically designed to meet the needs of technology industry policyholders; Cyber ERM is designed for all other industries.
The products offer three layers of protection: pre-incident loss and mitigation, which includes password management software and employee cyber security awareness training; incident response services, which gives clients fast access to a 24/7 hotline with market-leading cybersecurity legal experts in the event of an incident; and insurance, which provides protection against the consequences.
Thielen says Chubb sees businesses purchasing cyber insurance in four common ways: 1) on a standalone basis; 2) in conjunction with property-casualty coverages; 3) in conjunction with executive liability coverage; and 4) as part of professional liability policy.
“We provide solutions in each of these venues, and with our Cyber ERM approach, we offer consistent services and claims solutions regardless of what venue you purchase cyber through,” Thielen explains. “This was very intentional. We want our agents, brokers and policyholders to know that when you have cyber protection from Chubb, you know what you’re getting and that it’s a premium offering regardless of how you decided to buy.”
A business may not have purchased cyber insurance yet for any number of reasons. First, they may not fully understand the exposures or how to protect against them. Second, many cybersecurity protection solutions address specific risks, but many clients are looking for solutions that are simple and comprehensive. And third, clients may perceive transactions as technical and complicated.
But what if you’re not a cybersecurity expert? Can you still confidently talk to a client about the value of Chubb’s cyber products? “Agents appreciate the intuitiveness of offering a product which is comprehensive enough to address the risks of a firm on Wall Street, and selling substantially the same product to a bakery on Main Street—without needing to be an expert on every detail of every coverage part,” Thielen explains.
UNDERWRITING: Eligibility for up to $25 million in limits with a maximum capacity of $100 million, available through Chubb's Global Cyber Facility for qualifying risks. Coverage is available on a primary and excess basis and is fully configurable for agents and clients.
MINIMUM PREMIUM: None. “This makes this more economical sense for small businesses—we have small business customers that have comprehensive cyber insurance for less than a dollar a day,” Thielen says. Premiums scale for all risk sizes based on scope of coverage and limits.
TARGET: A very broad appetite serves all sizes of companies across all industries and all geographies. “Historically, industries like retail, health care, financial services and technology had higher takeup rates for cyber insurance,” Thielen says. “But our goal is to make it easy to consume for all industries.”
COVERAGE TERRITORY: All U.S. states.
CONTACT: Patrick Thielen, senior vice president of Financial Lines; Chubb, 525 West Monroe, Suite 1200, Chicago, IL 60662; 312-454-8222;.
Ronimarie Acord is an IA contributor.
