Google, Munich Re & Allianz
Risk Protection Program

Google LLC teamed with Munich Reinsurance Co. and Allianz Global Corporate & Specialty to create the Risk Protection Program, which provides underwriters with previously unavailable data while streamlining Google Cloud users’ underwriting process. 

The two elements of the collaboration are a risk manager diagnostic tool, with cybersecurity information provided by cloud users, and a quota share policy designed by Munich Re and the Allianz SE corporate risk unit. 

The program offers up to $50 million in limits and provides broad first- and third-party cyber coverages, as well as Google Cloud specific coverage enhancements. It is initially intended for companies with $500 million to $5 billion in annual revenue. 

“We really wanted to create an ability for our cloud customers to get the benefit of our better security,” said Loren Nickel, director of business risk and insurance for Google in Menlo Park, California. 

Changes customers previously made to improve security have not always been reflected in their cyber insurance products and pricing, he said. “We wanted to change that dynamic,” he said. 

Monica Shokrai, head of business risk and insurance for Google Cloud, said the company is able to create a situation where insurance acts as an incentive for customers to be more cyber secure. 

Developing the program, which took about a year, was challenging. “Just getting the insurance industry to think about cyber insurance in a different way took a bit of time,” Mr. Nickel said. 

It was also necessary to balance customers’ needs and help evaluate their risks, while protecting their privacy and providing insurers with the data they need to improve their decision-making, he said, adding that this created “a very complex system” to work through.

Bob Parisi, New York-based head of cyber solutions for Munich Re, said the program “allows us to get a deeper look” into applicants’ data and to have a more data-driven underwriting process. 

“It really is the way for us to move forward to make cyber a sustainable product,” he said. 

The program has been well received by risk managers, Google officials said. 

Pointing to the difficult cyber market, Mr. Nickel said, “I think everyone’s pretty excited about the ability to have more control” of their cyber insurance through the program, which the company aims to expand. 

“It’s a great solution, really, in a time of need,” said Tresa Stephens, New York-based regional product leader, cyber, tech & media, North America, for Allianz Global Corporate & Specialty.