2018 Innovation Awards: Security Incident Response ProgramPosted On: Nov. 4, 2018 12:00 AM CST
SECURITY INCIDENT RESPONSE PROGRAM
Hiscox Ltd.’s Security Incident Response Program provides risk managers with expertise on handling dozens of types of incident perils when there is still only a suspicion of a potential problem, said Gareth Bateman, its London-based product director.
Working in conjunction with London-based consultant Control Risks Group Holding Ltd., with which the insurer has a history of more than 25 years, for a set premium, the program, which was first introduced last year, provides help for dealing with crises, he said.
It was developed in response to policyholders’ concerns, said Mr. Bateman.
“We were seeing changes in the insurance market, with clients asking about a much broader range of issues, and sometimes we were seeing those issues being interrelated,” such as cyber/extortion or terrorism-related criminality, as well as “lots of other just fast-moving events you see on the news quite frequently,” he said.
“We decided to respond to that by creating an insurance product that could help corporations deal with a wide range of security incidents that might impact their people or their reputation,” said Mr. Bateman.
The program’s innovation is that in addition to responding once an event happens, it creates “two triggers to the insured that helps clients tackle developing issues before they become crisis events,” Mr. Bateman said.
The first one is that if there is suspicion an event has taken place “but at this stage you, as the client, don’t understand how big it is” or have a limited amount of evidence, just suspicion “is enough to trigger our policy to get expert support.”
In addition, when an event is imminent and “some piece of intelligence is telling you what’s going to happen, or some historical precedent tells you it always happens when ‘X’ event” happens, the program will also respond, said Mr. Bateman.
The program has a minimum annual premium of about $30,000, but “our average premium is more likely to be $100,000,” he said.
Mr. Bateman said 20% of Hiscox’s premiums is available to return to clients as a risk mitigation allowance “to encourage clients to invest in programs” such as training.
The program has signed up more than 70 corporate organizations since it was launched in early 2017, initially in the United Kingdom and Europe, then late last year in the United States, said Mr. Bateman.
About one-third of the clients are U.S.-based, he said.