Insurers Creating a Consumer Ratings Service for Cybersecurity Industry
27 3월 2019 - 8:02AM
Dow Jones News
By Leslie Scism
Some of the world's biggest insurers plan to work together on an
assessment of the best cybersecurity available to businesses, an
unusual collaboration that highlights the rising dangers posed by
digital hackers.
The program, which was launched Tuesday by the Marsh brokerage
unit of Marsh & McLennan Cos., will evaluate cybersecurity
software and technology sold to businesses. Marsh will collate
scores from participating insurers, which will individually size up
the offerings, and identify the products and services considered
effective in reducing cyber risk. The results will be available to
the public on Marsh's U.S. website.
Corporate policyholders that use the designated offerings may
qualify for improved terms and conditions on policies negotiated
individually with participating insurers, Marsh said. Insurers that
have agreed to participate include Allianz SE, AXA SA, Axis Capital
Holdings Ltd., Beazley PLC, CFC Underwriting Ltd., Munich Re, Sompo
International and Zurich Insurance Group AG, according to
Marsh.
Such collaboration across the insurance industry is unusual but
not unprecedented. In the 1950s, three insurance associations
teamed to create the Insurance Institute for Highway Safety, a
nonprofit organization dedicated to reducing deaths, injuries and
property damage from motor-vehicle crashes.
Many insurers see the burgeoning cyber-risk market as a rare
growth opportunity when many other insurance lines are growing
sluggishly. Dozens of insurers sell cyber-risk policies, with
annual premiums now tallying about $4 billion world-wide, Marsh
said. Global spending on information-security products and services
will likely top $120 billion this year, according to research and
advisory firm Gartner Inc.
There are potential benefits for insurers in the Marsh effort.
If global supply chains are well-defended with top-quality software
and services, insurers may incur fewer claims from hacking
disruption. A collaborative effort across many insurers has a
better chance of bringing to light weak cybersecurity products that
should be avoided by manufacturers in global supply chains,
industry executives said.
Called "Cyber Catalyst," the Marsh initiative will focus on
offerings that address risks such as data breach, business
interruption, data corruption and cyber extortion. They are
expected to include technology-based products such as firewalls and
encryption, tools for monitoring threats, and training and
incident-response planning.
Cybersecurity vendors will apply to have their products
evaluated in the Marsh program. Some 3,500 firms exist in the
world-wide sector, according to Momentum Cyber, which tracks deal
activity in the sector.
"Organizations want the best possible protection against
fast-evolving cyber threats, but many struggle to navigate the
crowded cybersecurity marketplace," said Thomas Reagan, a senior
Marsh executive.
Microsoft Corp. will be a technical adviser to the insurers, but
like Marsh, won't participate in the decision-making about the
designations, Marsh said.
Business "buyers are legitimately concerned about what they can
do to improve their risk profile," said Dan Trueman, global head of
cyber and technology at Axis, one of the inaugural participating
insurers in the Marsh effort. "Should I buy this technology or that
technology?"
Write to Leslie Scism at leslie.scism@wsj.com
(END) Dow Jones Newswires
March 26, 2019 18:47 ET (22:47 GMT)
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