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United States : AON BENFIELD secures reinsurance capacity for innovative cyber product

September 1, 2014

Aon Benfield says that it has secured the reinsurance capacity for an innovative cyber product created by the Lloyd's syndicate of mutual energy insurer AEGIS London.

The company said : "The product offers a comprehensive cyber risk management service, and allows AEGIS policyholders to separately reinsure their cyber exposures with a panel of leading reinsurers. Traditionally, cyber exposures have been included within other lines of reinsurance cover, such as property and casualty, but the level and scope of coverage can often be difficult to ascertain. The AEGIS London facility goes beyond the traditional basic cyber offering which has generally provided lower coverage limits and has focused on losses arising from information security breaches which led to data loss."

It described the facility as offering "holistic cover against cyber losses, focusing both on operational and information technology breaches which can lead to more expensive and wide ranging claims arising from bodily injury, contingent business interruption, and physical damage to high value assets. This advanced approach is needed to deal with emerging cyber threats and exposures, particularly in critical infrastructure industries such as manufacturing, marine and aviation."

Head of Cyber Insurance at AEGIS London, Rick Welsh, said : "In traditional property and liability reinsurance policies it can sometimes be very unclear whether cyber is covered, and this can lead to gaps in coverage and potential exposures for insurers. On the other hand, where cyber is covered there is the potential for much larger claims than reinsurers had anticipated, especially in relation to property damage. Our aim with this cyber product is both to highlight the potential for cyber losses in the market, and to provide a comprehensive, standalone coverage for those exposures. This allows insurers and reinsurers to better evaluate their cyber risks."

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Source: TendersInfo (India)

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