Risk Management and Insurance Brokerage Services

CYBER CAPABILITIES

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CYBER SOLUTIONSBeecher Carlson Executive Liability Practice’s significant time commitment and investment in the cyber risk field, has resulted in industry-leading achievements and innovations. Our success is the result of developing technologies and approaches that support your business requirements and drive operational excellence.

PROBABLE MAXIMUM LOSS (PML) MODEL

CYBER RISK ASSESSMENT SERVICES

CYBER INSURANCEGAP ANALYSIS

VENDORMANAGEMENT TOOLS

 Placed the largest Cyber Tower in the marketplace at $500M

 Placed the largest Cyber Business Interruption Tower in the marketplace at $420M

 CyberSelect™ – Exclusive manuscript policy with unique terms and conditions

 Cyber Business Interruption valuation

 Preferred response firm relationships with experienced providers

 Cyber supply chain risk assessment created with University of Maryland and NIST to measure IT security process maturity

 Claims expertise with $100M+ first-party claim and pre-response guidance

 Vendor Insurance Guidance

CYBERSELECT™ LOSS MODEL: AN ONLINE PRIVACY BREACH TOOL

Beecher Carlson has developed CyberSelect™ Model a loss model that addresses the costs of large-scale breaches, reflecting economies of scale at play in such mega-breach events. Through calculated analysis of recent, real-world breach events and associated crisis-management costs, the model shows decreases in Cost Per Record as the number of affected records increases. CyberSelect™ Model can aid in corporations becoming more informed of the risks associated with cybersecurity and consequently better able to calculate proper limits for their cyber insurance programs.

How much personal information

do you hold?

What corporate confidential information

do you store?

How much income relies upon computer systems?

What would it cost to replace computed critical systems data?

Who or what gets damaged or injured when systems fail?

KEY QUESTIONSMost companies have difficulty quantifying cyber risk and exposure. To begin our risk assessment process, we ask these five simple but key questions.

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CYBERSELECT™CyberSelect™ is a policy designed to offer the most comprehensive coverage available in the market with many enhancements not typically available, such as:

 No need for consent from the Insurer to hire breach experts to facilitate a rapid response to a data breach

 Ability to add “all risks” E&O coverage, computer theft coverage and expenses of directors and officers

 Full limits for costs of regulatory investigation, PCI investigation, fines/penalties and credit card reissuance costs

 Business Interruption and Extra Expense at full-policy limits with “contingent” business interruption from acts of third-party vendors

 Primary limits available up to $50M

 Cyber terrorism coverage

ISF THREAT HORIZON REPORT 2017 - PREDICTIONS

CYBER MARKET CAPACITY

2015

The CEO doesn’t get it

Organization can’t get the right people

Outsourcing security backfires

Insiders fuel corporate activism

Hacktivists create fear, uncertainty and doubt

Crime as a Service (Caas) upgrades to v2.0

Information leaks all the time

BYOC (bring your own cloud) adds unmanaged risk

Bring your own device increases risk exposure

Government and regulators won’t do it for you

2016

Nation-state backed espionage goes mainstream

A Balkanized Internet complicates business

Unintended consequences of state intervention

Service providers become a key vulnerability

Big data = big problems

Mobile apps become the main route for compromise

Encryption fails

The CEO gets it, now you have to deliver

Skills gap becomes a chasm

Information security fails to work with new generations

2017

Supercharged connectivity overwhelms defenses

Crime syndicates take a quantum leap

Tech rejectionists cause chaos

Dependence on critical infrastructure becomes dangerous

Systemic vulnerabilities are weaponized

Legacy technology crumbles

Death from disruption to digital services

Global consolidation endangers competition and security

Impact of data breached increases dramatically

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$1,675,000,000.00

$550,000,000.00 $510,000,000.00

$420,000,000.00 $330,000,000.00

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

Total Capacity

Cyber/Tech E&O

Healthcare Cyber

Business Interruption

Systems Failure Business

CYBER CAPABILITIES

800.657.0243 beechercarlson.com