Insurance industry's first standard for global cyber data breach released
Source: Asia Insurance Review | Aug 2018
ACORD, the global standards-setting body for the insurance industry, has announced what is said to be an industry-first standard for cyber data breach. The new ACORD cyber data breach standard was developed in collaboration with Aon and specialist insurer Beazley.
With cyber risk on the rise, organisations are impacted by cyber-related losses and demand for cyber coverage has grown steadily. However, insurers have identified the lack of uniform data standards and forms as a roadblock to the growth of cyber insurance, even as increasing demand for it is driving the need for streamlined, standardised cyber risk data exchange, said ACORD, Aon and Beazley in a joint statement announcing the new standard.
The new 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 support the rapidly evolving marketplace better. Aon and Beazley, major cyber market players, 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 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 and 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 ACORD president and CEO 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.” A