The partnership aims to cut cloud security risks and offer cyber insurance designed for Google Cloud customers.
Earlier this week, Google announced it is teaming up with two global insurers, Allianz Global Corporate and Specialty (AGCS) and Munich Re, to launch the Risk Protection Program, a partnership that will offer cyber insurance coverage to Google Cloud customers and reduce cybersecurity risks.
The partnership allows access to data that insurance carriers have traditionally not had access to at a time when cyber insurance is playing a key role in enterprises of all sizes. Initially targeted at U.S.-based companies with annual revenue of between $500 million and $5 billion, coverage is expected to be extended to users in other revenue segments and countries at a later date.
“Our clients' risks are shifting as data and services become increasingly cloud-based and we are keen to remain at the forefront of understanding these new risks to better service our insureds," said Chris Townsend, member of the board of management, Allianz SE. “Through this innovative program, we are bringing together technology, security and insurance to give our customers the cover that they need and to help to create a sustainable market for cyber risks."
The Risk Protection Program is built around two parts. The Risk Manager, a diagnostic tool, allows Google Cloud customers to measure and manage their cyber risk on the platform. Cloud Protection +, a comprehensive cyber insurance product developed by AGCS and Munich Re, provides specialized coverage available exclusively for Google Cloud customers.
“Through this unique cooperation and with our innovative product Cloud Protection +, we are addressing the specific risk management needs of Google Cloud customers," said Stefan Golling, member of the board of management, Munich Re.
“The enhanced data from the Risk Manager tool allows customers to benefit from a more efficient and transparent underwriting process and access best in class cyber coverage," said Thomas Kurian, CEO of Google Cloud.
Through Cloud Protection +, both AGCS and Munich Re will cover up to $50 million in potential losses and will stretch coverage of lost revenue for up to a full year, from a maximum of six months previously.
“Coupling a risk management product with an insurance product is a 160-year-old idea. Hartford Steam Boiler was a boiler inspection service that offered insurance as part of its risk management services," said Chris Boggs, executive director, risk management and education, Big “I." “This is a new day with new risks that requires new expertise to effectively manage a real cyber risk while coupling the risk management program when an insurance product designed to respond if the risk management product is hacked. Cyber and the risks inherent with the cloud need this kind of expertise, product and insurance."
In 2018, the Big “I" partnered with Coalition, the leading technology-enabled cyber insurance solution, to give agents access to the cyber and technology errors & omissions insurance markets.
“By seamlessly combining Google's cutting-edge cloud technology with our best-in-class risk transfer expertise, Munich Re and AGCS are now positioned to offer a superior solution to our clients," said Robert Parisi, head of cyber solutions-North America, Munich Re.
The move is not Google's first foray into the insurance space. In 2018, Applied Systems announced a nine-figure minority investment from CapitalG, the growth equity investment fund of Google parent company Alphabet Inc.
Olivia Overman is IA content editor.