ACORD, the global standards-setting body for the insurance industry, has announced the release of what is said to be an industry-first standard for cyber data breach. The ACORD Cyber Data Breach Standard was developed in collaboration with Aon and specialist insurer Beazley, said the three entities in a joint statement last week.
As the threat of cyber risk grows, organisations are impacted by cyber-related losses and demand for cyber coverage steadily grows. However, the lack of uniform data standards and forms hampers the growth of cyber insurance, even as increasing demand is driving the need for streamlined, standardised cyber risk data exchange.
The new ACORD Cyber Data Breach Standard increases operational efficiency and effectiveness for cyber risk stakeholders, establishes a baseline for compliance and audit-related activities, and enables solution providers to leverage standards for increased support.
ACORD identified a need to expand and enhance the existing cyber liability standard to better support the rapidly evolving marketplace. Aon and Beazley, key stakeholders in the cyber market, collaborated with ACORD to contribute cyber-related insights and various industry assets. Collectively, they focused on data breach, examining common challenges with manual, disparate practices for sharing information during risk assessment and policy workflow. ACORD synthesised these components to create and refine the draft standard.
The Cyber Data Breach Standard is being made available immediately to ACORD members for review and feedback. It will then be incorporated into the next scheduled release of the ACORD Property & Casualty Standards, and will continue to evolve as the market expands and adapts in alignment with ACORD’s member requirements.
“Data breach is just one example of the many cyber exposures which require fast and accurate information exchange between parties,” said president and CEO of ACORD Bill Pieroni. “ACORD will continue to welcome contributions like this from industry leaders, which will expand the portfolio of our cyber standards for the benefit of the entire insurance industry.”
“This question set will help organisations approach cyber risk in a united manner,” said Aon US Cyber Solutions president Christian Hoffman. “Connectivity and collaboration across organisations including, but not limited to, information security, legal and risk management is critical. A set of uniform standards is an ideal place to start this transition.”
”Beazley has been underwriting cyber for more than a decade. We work with companies ranging in size from small businesses to the Fortune 500. We are delighted to have been a part of this process and offer our expert advice,” said Beazley UK Technology, Media & Business Services focus group leader Paul Bantick.