New cyber data breach standard increases operational efficiency and effectiveness across the global insurance value chain
Pearl River, NY (July 7, 2018) – ACORD, the global standards-setting body for the insurance industry, today announced the release of the ACORD Cyber Data Breach Standard. This represents the insurance industry’s first standard for cyber data breach. The standard was developed in collaboration with Aon, a leading global professional services firm providing risk, retirement and health solutions, and Beazley, a specialist insurer providing clients with the highest quality of underwriting and claims service worldwide.
As the threat of cyber risk grows, the insurance market continues to evolve. Nearly 60% of insurers identify the lack of uniform data standards and forms as a key roadblock to the growth of cyber-insurance policies. As organizations continue to be impacted by cyber-related losses, demand for coverage is steadily growing. This increasing demand is driving the need for streamlined, standardized cyber risk data exchange.
“ACORD has been at the forefront of cyber standards since we created the standard to capture cyber exposure in 2015,” said Bill Pieroni, President & CEO of ACORD. “This expanded standard supports the evolution of cyber coverage and data breach events. We would like to thank Aon and Beazley, whose contributions greatly accelerated the development and increased the quality of this global standard.”
ACORD Data Standards facilitate fast, accurate data exchange among stakeholders in multiple lines of business across the insurance value chain, including carriers, agents, brokers, and software providers. The new ACORD Cyber Data Breach Standard increases operational efficiency and effectiveness for cyber risk stakeholders, establishes a baseline for compliance and audit-related activities, and enables solution providers to leverage standards for increased support.
“This question set will help organizations approach cyber risk in a united manner,” said Christian Hoffman, President, U.S. Cyber Solutions at Aon. “Connectivity and collaboration across organizations including, but not limited to, information security, legal and risk management is critical. A set of uniform standards is an ideal place to start this transition.”
ACORD identified a need to expand and enhance the existing cyber liability standard to better support the rapidly evolving marketplace. Aon and Beazley, key stakeholders in the cyber market, collaborated with ACORD to contribute cyber-related insights and various industry assets. Collectively, they focused on Data Breach, examining common challenges with manual, disparate practices for sharing information during risk assessment and policy workflow. ACORD synthesized these components to create and refine the draft standard.
”Beazley has been underwriting cyber for more than a decade. We work with companies ranging in size from small businesses to the Fortune 500. We are delighted to have been a part of this process and offer our expert advice,” says Paul Bantick, UK Technology, Media & Business Services Focus Group Leader for Beazley.
The Cyber Data Breach Standard is being made available immediately to ACORD members for review and feedback. It will then be incorporated into the next scheduled release of the ACORD Property & Casualty Standards, and will continue to evolve as the market expands and adapts in alignment with ACORD’s member requirements.
“Data breach is just one example of the many cyber exposures which require fast and accurate information exchange between parties,” said Pieroni. “ACORD will continue to welcome contributions like this from industry leaders, which will expand the portfolio of our cyber standards for the benefit of the entire insurance industry.”
1. ACORD/NAIC Cyber Insurance Survey, 2017.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations in Europe, the US, Canada, Latin America, Asia and Australia. Beazley manages six Lloyd’s syndicates and in 2017 underwrote gross premiums worldwide of $2,344 million. All Lloyd’s syndicates are rated A by A.M. Best.
Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley is a market leader in many of its chosen lines, which include professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business. For more information please go to: www.beazley.com.
About ACORD Corporation
ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance and related financial services industries. ACORD facilitates fast, accurate data exchange, and efficient workflows through the development of electronic standards, standardized forms, and tools to support their use. ACORD members worldwide include hundreds of insurance and reinsurance companies, agents and brokers, software providers, financial services organizations and industry associations. ACORD maintains offices in New York and London. Learn more at www.acord.org.
Source: ACORDTags: ACORD, Aon, Beazley, data breach, industry first