cyber liability presented by the partners group commercial property and casualty division
TRANSCRIPT
COMMERCIAL DIVISION
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Cyber Risk
Presented by Jordan Stair & Paul Vlcek,The Partners Group Commercial Insurance Division The Partners Group presents for CFO Selections.April 6, 2015
COMMERCIAL DIVISION
■ Who is The Partners Group?
■ What is Cyber Risk?
■ Who is at Risk?
■ Cyber Insurance
■ Cyber Risk Management
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Who is The Partners Group?
■ Full Service Insurance Brokerage■ Four Divisions
⁃ Commercial Property & Casualty⁃ Employee Benefits / Wellness Programs⁃ Private Client Services⁃ Data Analytics
■ 4 Offices – Portland, Bend, Seattle, Bozeman■ $21,000,000+ in Revenues■ 115+ Employers■ Niche Specialized■ Founding Member of C2 Solutions
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
About The Partners Group
EmployeeBenefits
Retirement & Investment Services
Commercial & Individual Insurance
Business Consulting
w w w. t p g r p . c o m
COMMERCIAL DIVISION
What is Cyber Risk?
(aka “Cyber Security Liability”)
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Case 1:Parking Facility Service Provider – Hackers installed malware that searched for financial information such as: credit cards numbers, card holder names, expiration dates and verification codes. 1,000 + breached = $150,000 in loss conservatively
Case 2:Two different hotel operators received e-mails from primary investor requesting fund transfer’s in the amount of $100,000 each. Shortly after the money was transferred multiple requests from the same investors for additional funds followed. Spear Phishing.
Case 3:Multiple company servers were breached and used as additional power sources to attack a publicly traded financial institution servers. These small companies were fined for failing to meet network security standards, each paying in excess of $25,000.
Denial of Service Attack.
In 2014 security engineers and IT professionals determined Denial of Service attack were the second most frequently reported cyber attack.
Why should you be concerned?
COMMERCIAL DIVISION
Who is at Risk?
■ Companies that:⁃ Have a website⁃ Have PII stored in their computer network or
in paper files⁃ Use outsourced technology – Cloud Service⁃ Have employees⁃ First and Third Party Risks
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Conclusion- EVERY COMPANY IS AT RISK
Cyber liability claims are expected to surpasstraditional liability claims in frequency by 2017.
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Problems:
■ Lack of Communication and Collaboration Amongst Departments.⁃ How do you know what your exposure is if
IT has not been involved in this discussion?
■ Lack of Proactive Culture⁃ Cyber Liability is a Real Risk for ALL
Companies, Address it!
■ Lack of Resources⁃ IT Wears many hats.⁃ Funding
Cyber Risk/Privacy Protection
Risk Management
IT
Facilities
HR
Finance
COMMERCIAL DIVISION
Key Issues to consider in assessing cyber risk
■ Physical and environmental security■ Personnel security■ Computer and network management■ System access controls■ System development and maintenance■ Incident response and business continuity
planning■ Security compliance
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Cyber Risk/Privacy Protection
STEP 1
PRE-LOSS
• RISK IDENTIFICATION – AUDITS, QUESTIONAIRRES, SYSTEMS REVIEW• NETWORK SECURITY PROVIDER – ANNUAL SECURITY AUDIT. WHAT
RESOURCES ARE THEY PROVIDING?• DEVELOP NETWORK SECURITY RESPONSE PLAN
STEP 2
INSURANC
E
• WHAT EXPOSURES CAN YOU TRANSFER? • NETWORK AND SECURITY• CYBER BREACH – THIRD PARTY• BUSINESS INTERRUPTION
STEP 3
POST LOSS
• IMPLEMENT NETWORK SECURITY RESPONSE PLAN• IMAGE RESTORATION• CONTINUED OPERATIONS• INSURANCE CLAIM
COMMERCIAL DIVISION
How The Partners Group can help
■ Review current network security provider contract to help determine what your companies actual exposure is
■ Help identify the maximum probable loss■ Develop and Insurance product that meets your
needs■ Provide resources to develop your own network
security plan⁃ Who are the key individuals⁃ What system processes should be implemented in the event
of a breach⁃ PR readiness
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
Any Questions?
Cyber Risk/Privacy Protection
COMMERCIAL DIVISION
The Partners Group is committed to protecting the privacy of your account information, and we trust that you will show the same sensitivity regarding the content of this presentation. Reproduction or further distribution is strictly prohibited.The Partners Group is committed to protecting the privacy of your account information, and we trust that you will show the same sensitivity regarding the content of this presentation. Reproduction or further distribution is strictly prohibited.
www.tpgrp.com
800-722-6339
Portland | Lake Oswego Bellevue | Bend | Bozeman
Thank you for the opportunity to present to you
today!