Cyber Risks – A Global Threat

Empire Ballroom A, 10/23/16

Reason Global Insurance

Cyber Risks

Cyber Risks – A Global Threat

So who are Reason Global Insurance

• Lloyd’s of London broker based in U.K• Specialist broker working only in international moving and

storage• Combined industry experience of over 100 years• Work only with A+ rated Lloyd’s insurers• IAM Attendees since 2008• Arrange cover in over 35 countries across the globe• Work with insurers who are leading the way on cyber

protection for business• Today is about providing some insight for IAM members

Cyber Risks – A Global Threat

The Threats to Your BusinessWhat is ‘Cyber’?

Cyber Risks – A Global Threat

How much of a threat is it today?

Statement from PwC Global in 2016

“Cyber Crime has overtaken the drug trade as the most profitable form of crime in the world”

Digital technology continues to transform and disrupt the world of business, exposing organisations to both opportunities and threats. So it’s hardly surprising that cybercrime continues to escalate – ranking as this year's second most reported economic crime.

Australian Attorney General, Robert McLelland

Operational system failure, loss of service,

business interruption

Financial fraud / theft

Intellectual Propertyloss of confidential information

Legal & Regulatorysanctions / fines

Reputationalbusiness reputation

Cyber Risks

Media Perils Public Relation costs Defamation

Risk of the digital world Operating online Storing electronic data

Data Breach Failure to protect Personally identifiable Information Notification costs

Cyber Crime Hacking Data theft

Contracting & spreading a computer virus Denial of Service (DoS) Attacks

The EXPOSURE

Cyber Risks – A Global Threat

The Threats to Your BusinessWhat can really be affected though?

• Main operating software• Company website• Social Media profiles• Ransom payments demanded• Theft of client data (passports, payment details etc…)• Contract loss as a direct result• Reputational damage

Cyber Risks – A Global Threat

The Threats to Your BusinessConsequences of a Cyber Incident

• Loss of brand and customer trust• Inability to trade and costs of downtime• Costs to repair or reinstate systems• Ransom payments to hackers• Regulatory fines• Legal costs• Compensating victims of data breach for theft of data

Cyber Risks – A Global Threat

The Threats to Your BusinessDoes it really affect the moving industry?

• ‘My issues are around physical movement, not cybercrime’• ‘I’m too small to be of consequence to these guys’• ‘My computers going down is the last of my worries’• ‘The real targets of these attacks are PLC’s and financial

institutions’• ‘Everything is backed up and secure so I’m not worried’

Cyber Risks – A Global Threat

The Threats to Your BusinessCyber Exposure can manifest itself in two ways

1) Cyber Attack: Cyber theft & Cyber fraud

Industrial

espionage

Insider attacks

Extortion

Cyber terroris

m

Hacking

2) Non-Malicious Events:Human error Loss of data

(i.e. laptop)

Cyber Risks – A Global Threat

Cyber Risks – A Global Threat

So what is the Insurance industry doing?What is Cyber Liability Insurance?

• Cyber Liability addresses the first and third-party risks associated with e-business, the Internet, networks and informational assets.

• Cyber Liability Insurance coverage offers cutting edge protection for exposures arising out of Internet communications.

Cyber Risks – A Global Threat

So what is the Insurance industry doing?First Party Exposures – those that directly affect you and your business

Virus Data Breaches

Loss of data, programs or

software

Denial of service attacks

Website hijacking, damage,

threats and extortion

Business Interruption &

extra expenses

1st

1st

1st

1st

1st

1st

Cyber Risks – A Global Threat

So what is the Insurance industry doing?Third Party Exposures – responsibility lies with you but others are affected

Breach of confidence

Loss or damage to third party

data

Defamation, libel and

falsehoods

IP and Domain Name

infringements

Disclosure of non-public personal

information (PII)

3rd

3rd

3rd

3rd

3rd

Cyber Risks – A Global Threat

So what is the Insurance industry doing?Case Study 1

What happened:• Website defamed with unrelated and potentially offensive

advertising

Insurer Response:

Specialist team removed the material from the website quickly to minimise the impact

Specialist team were able to liaise with the client to ensure brand and reputation remained in tact

Cyber Risks – A Global Threat

So what is the Insurance industry doing?Case Study 2

What happened:

• Managing Partner’s email system ‘hacked’

• Emails sent to member of staff to pay a 3rd party service provider – bank details had been tampered with

Insurer Response:

Luckily no loss of funds however specialist team utilised to remove hacker from the system and repair damage

Cyber Risks – A Global Threat

So what is the Insurance industry doing?Case Study 3What happened:

• Number of insured’s clients received emails from a ‘very similar’ email address to the firm with links to a fake website

• Hackers claimed 1st party fees were to be sent to another bank account

Insurer Response:

Specialist team helped the insured to notify the relevant authorities to bring down the website

Specialist team assisted in notifying a number of customers to ignore the emails and explain the situation

Cyber Risks – A Global Threat

Thank you for your time