Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons
Cyber Times and the Insurance Industry
TerritoryInsurance Conferenceresilient future
Territory Insurance Conference, resilient future
Overview
• “The digital age is central to the economic growth and wellbeing of
Australians. It brings both opportunities and challenges.” *
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* ASIC – Cyber resilience: Health Check, March 2015.
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Australian Institute of CriminologyTrends and issues in Crime and Criminal Justice
Cyber threat landscape faced by financial and insurance industry
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Allianz Global Corporate and SpecialtyA Guide to Cyber Risk
September 2015
Territory Insurance Conference, resilient future
Crime Prevention
• Security patches• Firewalls• Antivirus and malware tools• Fraud detection and prevention• Staff policies, awareness and training• Physical security
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Australian Institute of CriminologyTrends and issues in Crime and Criminal Justice
Computer security threats faced by small businesses in AustraliaFebruary 2012
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Dual Claim Examples
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Allianz
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* Dual Claim Examples
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
Cyber Insurance• There has been increasing appetite for, and developments in, targeted cyber
insurance liability cover. Existing insurance ( e.g. business continuity or professional indemnity cover) may not adequately cover the impact of a cyber attack.
• Cyber insurance can include a range of covers tailored to relevant cyber risks, such as: (a) data or privacy breach cover-relating to the management of an incident,
notification of the data subject, remediation, court costs and regulatory fines;
(b) media liability cover-for example, third-party damages for a defacement of a website, or intellectual property infringements;
(c) extortion liability cover-typically due to losses as a result of a threat of extortion; and
(d) network security liability cover-third-party damages as a result of a cyber attack on network security, such as a disruption of service attack or a theft of data on third-party systems.
• Considering cyber insurance may be an appropriate business decision based on a company's risk profile.
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
* ASIC – Cyber resilience: Health Check
Territory Insurance Conference, resilient future
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
Cover
• Privacy and Data Breach• Repair of Individual Reputation• Business Interruption and Restoration
costs• Forensic Services• Remediation Costs• Cyber Extortion• Hacker Theft Cover Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
• Allianz• AIG
• Dual Claims Examples
Territory Insurance Conference, resilient future
• Policy wording• Industry wide data• Reliance on policies and
procedures• Increased regulation• Advancing technology
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
• Premiums are too expensive (52%)• Too many exclusions, restrictions
and uninsurable risks (44%)• Property and casualty policies are
sufficient (38%)
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015
Territory Insurance Conference, resilient future
The Challenge
Can the insurance industry keep abreast of the rapidly changing face of the cyber world?
Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015