Swiss multinational insurance company, ACE Limited announced that the company will start offering cyber protection insurance up to $100 million. With the rising numbers of cyber security attacks particularly in the United States, the company is planning to lead the way for cyber insurance. According to PricewaterhouseCooper, the cyber insurance sector will increase to $7.5 billion by 2020.
According to Reuters, ACE Limited has provided with a detailed procedure on how to manage the insurance policy. Customers applying for the loan will have to undergo an intense scrutiny during underwriting. The process is to help the company detects how well prepared the customers are and the level of the cyber security provided by the company.
After the review process, if ACE Limited detects any flaw in the customers' system it will its appointed cyber- security firm to design a measure for them. However, customers are not obligated to follow the step suggested before they are allowed to sign up for a policy with the company.
Business Wire also reported that besides the cover, Ace will also act as the single point of contact for Global Cyber Security components. Under the service, Ace will perform few tasks including underwriting each risk and providing loss control services after any attack.
Ace has also come out with an integrated loss control services which could be a model for other insurance company in the future. The core services are available in the Insurance Journal which are core security defense, enterprise risk management, incident response capabilities, business interruption calculation, data analytics and industry metrics. The core services are the result from ACE Limited works with other cyber security firms. Besides covering the loss, the services provided will also help its clients to analyze any flaws and defense from future attack.
According to the services, ACE will hire its partners in cyber security firms to deal with the data analysis and measures that customers have to take in the future. Among the companies working with ACE are BitSight, FireEye, Navigant, NetDilligence, Promontory Financial Group and Verizon Communication Inc.
Insurance companies are racing to offer the best protection to its customer as there are reported that Google could enter the industry. The giant company could easily win the biggest market share if it decided to enter the industry. According to PricewaterhouseCooper, around $2.5 billion cyber insurance claim last year came for the United States alone, making the new sector a lucrative business for insurance companies.
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