New Beazley division to focus on cyber and executive risk
Specialist insurer Beazley today announced the creation of a new division, Cyber & Executive Risk, to focus on some of the most challenging risks confronting businesses around the world.
The new division, led by Mike Donovan, brings together Beazley's exceptional capabilities in cyber insurance - a field in which Beazley has been a market leader for over a decade - with its deep expertise in executive risk, including directors' & officers' (D&O) insurance and employment practices liability (EPL). Beazley's executive risk team currently insures more than 35% of the Fortune 500 and more than half of the companies comprising the Dow Jones Technology Index.
"We brought our expertise in these areas together for two main reasons," said Mike Donovan. "First, they are rapidly changing risks that are growing harder for companies to manage. Technological, social and regulatory changes all impinge on these risks and it is critical for our clients to partner with an insurer that can keep pace with these changes. We provide, not simply insurance coverage to respond swiftly to claims, but detailed guidance on risk prevention, mitigation and incident response.
"Second, the stakes are very high. We're protecting critical assets - our clients' data, their operations, their senior executives, and their corporate reputations. A cyber attack can put all of these assets at risk, but a class action lawsuit against a company's directors can be comparably damaging. And the acceleration and amplification of bad news through social media means that reputational damage can be inflicted faster and with greater effect."
The business lines that have been combined within the cyber & executive risk division accounted in aggregate for a little over a quarter of Beazley's gross written premiums in 2018 and comprise some of its fastest growing products. These include the company's flagship cyber product, Beazley Breach Response (BBR), and - within its executive risk product suite - M&A transaction liability insurance.
The division's underwriters have also pioneered a range of radically innovative products over the years. These products frequently combine coverage to indemnify clients against the financial costs of lawsuits with expert services to minimize the chances of claims occurring and respond effectively to incidents when they do occur. Beazley in-house cyber incident response unit, BBR Services, exemplifies this broader approach to risk management pioneered by Beazley.