Zurich Insurance has developed a new insurance solution for companies and their captives to protect against risks associated with data security breaches.
The new Security and Privacy Protection policy will help companies integrate cyber coverage into their captive insurance programmes, allowing them to gain better control of their cyber exposures.
Steve Bauman, senior vice president and head of captive services at Zurich North America, commented: “The risk of having sensitive data lost or stolen has grown exponentially over the last few years, largely due to the interconnectedness of everything we do.”
“By integrating Zurich’s Security and Privacy Protection programme into a captive, customers can better gain control of their cyber exposures by more effectively managing their retention and deductibles.”
The Zurich programme will allow customers to benefit from the company’s risk engineering team, which is experienced in cyber-related issues.
Erica Davis, senior vice president, head of specialty products errors and omissions for Zurich North America, added: “Cyber continues to be a top risk management concern for many of our customers. Businesses are exploring new avenues to address cyber risk, especially given the elastic conditions of the security and privacy insurance market.”
Davis continued: “Demand for cyber coverage and risk engineering services has skyrocketed. Captive utilisation with security and privacy coverage may be the optimal solution for customers seeking a blend between programme flexibility and the benefits of a risk transfer approach.”
