With the support of firms like FireEye Inc (NASDAQ:FEYE), ACE Limited (NYSE:ACE) recently announced to offer cyber policies worth up to $100 million, along with added scrutiny and services. The announcement holds a lot of significance in today’s time when according to the experts; the market is not offering such a huge coverage to businesses because of high-profile breaches. Apart from FireEye Inc, there are other companies that will help Ace Limited in offering blanket coverage like this. These include Verizon Communications Inc. (NYSE:VZ), Promontory Financial Group, NetDiligence, BitSight Technologies, Navigant Consulting, Inc. (NYSE:NCI) and of course, Mandiant services group of FireEye.
Availing the cyber security policy- Is it easy?
The businesses willing to avail these cyber policies from ACE Limited shall have to undergo intensive scrutiny during the process of underwriting. This means that the customers shall have to undergo through a range of processes including cyber security defenses’ reviews, plan of board to respond to cyber attacks and finally, strategies that you will take up for mitigating the breach impact. So, this is definitely not an easy process, according to the SVP of ACE Limited’s global cyber practice, Toby Merrill.
Even though the businesses can obtain the entire coverage of cyber security from ACE Limited if the deficiencies have not been covered, but an on-site assessment from a third party cyber security firm is a must. This outside firm must have been appointed by ACE Limited.
As per the plan, the consultants shall be offering recommendations for remediating the pits. However, the cyber policy offered by ACE Limited will not demand its customers to implement these recommendations immediately.
During renewal of the cyber policy, the customer should review all these areas mentioned by the consultant in recommendations.
Role of the partners
The partners mentioned above, will allow ACE Limited (NYSE:ACE) in refining its process in order to quantify risk arising during the process of underwriting. According to the Director of Partner Alliance with FireEye, Karen Kukoda, as far as cyber security is concerned, there isn’t any actuarial table. ACE Limited, shall nevertheless, rope in FireEye and others so as to assess the potent risks for its clients.
