Emergence Insurance now offers the largest cyber insurance capacity in Australia with $20 million available under its Cyber Enterprise Solution and excess-of-loss policies.
Emergence has just renewed its binder at Lloyd’s, creating a facility that enables it to offer high levels of cover for corporates with revenues of more than $250 million.
The cyber-specialist underwriting agency can now target larger entities because Lloyd’s syndicates have supported the agency’s underwriting discipline.
Emergence CEO and founder Troy Filipcevic says: “The market recognises that cyber is all we do. With multiple syndicates providing our security, we demonstrate sustainability for our Cyber Enterprise Solution policy.”
The Cyber Enterprise Solution is efficient for brokers because they don’t need to find follow markets or go to London to seek additional capacity. Emergence has the underwriting expertise and capacity locally.
Emergence is delighted that Lloyd’s syndicates have shown confidence in our disciplined underwriting approach.
We can offer both primary and excess layers to corporates that need high-level coverage and larger cyber programs.
Cyber risk can be covered, providing insureds implement adequate controls. Our target market is not necessarily entities with less risk, but those that understand the risk and invest in mitigation.
Trent Nihill, Emergence Head of Corporate, says the Enterprise Cyber Solution was developed because of increased cyber exposure, a changing threat landscape for corporates, and moves by some insurers to limit ransomware coverage, impose sub-limits, and require self-insured co-insurance layers.
The Enterprise policy’s optional reputational harm cover provides protection to the full policy limit with the business interruption (BI) trigger being a net profit loss from a cyber event causing an adverse media event.
Traditionally, cyber policies have a BI trigger that ties coverage to a cyber event causing either an outage or degradation of the insured’s computer system. However, that misses the major exposure of net profit loss from a cyber event that doesn’t cause an outage but impacts on the insured’s reputation, for example, a privacy breach.
Trent says the 2022 cyber attacks against Optus and Medibank Private caused major reputational harm losses. While most standard Australian cyber policies would not have covered their BI losses, Emergence’s optional reputational harm cover would have provided indemnity.
Reputational harm is a critical cover for insureds. Emergence encourages brokers to ask underwriters about it when placing cyber policies.
Emergence is the only Australian-based cyber underwriter with an inhouse, incident response and claims management team and it has the nation’s largest cyber team with more than 30 employees.
The Cyber Enterprise Solution policy complements Emergence’s Cyber Event Protection policy for SMEs which has been available and consistently upgraded since our launch in 2015.
Emergence has just renewed the binders across its entire product range with 100% Lloyd’s security.