An insurance brokerage has launched an initiative to bring together some of the world’s biggest insurers for a collaboration on a cybersecurity product ratings service, according to a report in The Wall Street Journal.
The plan, which illustrates the growing dangers of hacking, is meant to create an assessment system for the most viable cybersecurity defenses available to businesses.
The program, called Cyber Catalyst, was introduced on Tuesday (March 26) by the Marsh brokerage unit of Marsh & McLennan. The unit will collect and analyze scores from insurers participating in the program, aiming to find the services that most effectively reduce the risk from cyber hackers. Marsh will display the results on its website.
Policyholders using the designated services that are deemed viable could qualify for better conditions on their policies. The participating insurers so far include Allianz, AXA SA, Axis Capital Holdings, Beazley, CFC Underwriting, Munich Re, Sompo International and Zurich Insurance Group.
The move mirrors a similar initiative from the ‘50s, when insurance associations collaborated on the Insurance Institute for Highway Safety, an organization with the mission of reducing human catastrophes and property damage from car crashes and collisions.
The potential benefits of the initiative could include fewer claims from hacking-related attacks, as well as the highlighting of weak products that industry members should avoid.
Also, insurers see cyber-risk as a growth opportunity, while other lines show slow growth. Annual premiums for cyber-risk policies account for $4 billion globally, according to Marsh, and spending on security products to combat cyberattacks is expected to reach at least $120 billion this year.
Vendors of cybersecurity products can apply to have offerings checked and evaluated in the program.
“Organizations want the best possible protection against fast-evolving cyber threats, but many struggle to navigate the crowded cybersecurity marketplace,” said Thomas Reagan, a senior Marsh executive.