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Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance Conference resilient future

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Page 1: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons

Cyber Times and the Insurance Industry

TerritoryInsurance Conferenceresilient future

Page 2: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Overview

• “The digital age is central to the economic growth and wellbeing of

Australians. It brings both opportunities and challenges.” *

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* ASIC – Cyber resilience: Health Check, March 2015.

Page 3: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Australian Institute of CriminologyTrends and issues in Crime and Criminal Justice

Cyber threat landscape faced by financial and insurance industry

Page 4: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Allianz Global Corporate and SpecialtyA Guide to Cyber Risk

September 2015

Page 5: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Crime Prevention

• Security patches• Firewalls• Antivirus and malware tools• Fraud detection and prevention• Staff policies, awareness and training• Physical security

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Australian Institute of CriminologyTrends and issues in Crime and Criminal Justice

Computer security threats faced by small businesses in AustraliaFebruary 2012

Page 6: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 7: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Dual Claim Examples

Page 8: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Allianz

Page 9: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* Dual Claim Examples

Page 10: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 11: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 12: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Cyber Insurance• There has been increasing appetite for, and developments in, targeted cyber

insurance liability cover. Existing insurance ( e.g. business continuity or professional indemnity cover) may not adequately cover the impact of a cyber attack.

• Cyber insurance can include a range of covers tailored to relevant cyber risks, such as: (a) data or privacy breach cover-relating to the management of an incident,

notification of the data subject, remediation, court costs and regulatory fines;

(b) media liability cover-for example, third-party damages for a defacement of a website, or intellectual property infringements;

(c) extortion liability cover-typically due to losses as a result of a threat of extortion; and

(d) network security liability cover-third-party damages as a result of a cyber attack on network security, such as a disruption of service attack or a theft of data on third-party systems.

• Considering cyber insurance may be an appropriate business decision based on a company's risk profile.

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

* ASIC – Cyber resilience: Health Check

Page 13: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 14: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

Cover

• Privacy and Data Breach• Repair of Individual Reputation• Business Interruption and Restoration

costs• Forensic Services• Remediation Costs• Cyber Extortion• Hacker Theft Cover Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

• Allianz• AIG

• Dual Claims Examples

Page 15: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

• Policy wording• Industry wide data• Reliance on policies and

procedures• Increased regulation• Advancing technology

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 16: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

• Premiums are too expensive (52%)• Too many exclusions, restrictions

and uninsurable risks (44%)• Property and casualty policies are

sufficient (38%)

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015

Page 17: Territory Insurance Conference, resilient future Mr Ralph Bönig, Special Counsel, Finlaysons Cyber Times and the Insurance Industry Territory Insurance

Territory Insurance Conference, resilient future

The Challenge

Can the insurance industry keep abreast of the rapidly changing face of the cyber world?

Mr Ralph Bönig, Special Counsel, Finlaysons 28/10/2015