Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Cyber and Data Security: Claims, Coverage and Marketplace Trends webinar (October 2022)
16 slides from Brown & Brown's conference presentation, Oct 19, 2022
Slide 1: Cyber and Data Security: Claims, Coverage and Marketplace Trends
Cyber and Data Security: Claims, Coverage and Marketplace Trends Presented By: Hays Companies, Inc., an owned Brown & Brown Executive Risk Team subsidiary of Brown & Brown, Inc.
Slide 2: Presentation Agenda
Presentation 1 Claim Issues and Trends Agenda 2 The Role of Breach Counsel 3 Policy Placement Issues in the Marketplace 4 Q&A BROWN & BROWN | 2
Slide 3: Panelists
Panelists Aaron Stone David Wasson Brown & Brown, Moderator Brown & Brown, Panelist Theresa Le Sean Hoar Cowbell, Panelist Lewis Brisbois, Panelist BROWN & BROWN | 3
Slide 4: Claim Issues and Trends
Claim Issues and 01 Trends
Slide 5: Claim Issues and Trends: Types of Coverage
Claim Issues and Trends TYPE S OF COVE R AG E First Party Third Party • Data Breach • Liability • Ransomware • Payment Card • Social Engineering Industry • System Failure • Media Liability • Data Restoration • Business Interruption • Contingent Coverage BROWN & BROWN | 5
Slide 6: Claim Issues and Trends
Claim Issues and Trends • Incidence and Types of Claims » Overall increase in frequency of 743% since 2012. » Ransomware o Average demand $1.8M » Social Engineering » Liability • Industries Impacted » Size of Target o Companies with $100M+ in annual revenue prime targets o Companies with $25M-$100M
Slide 7: Claim Process and Common Coverage Issues
Claim Issues and Trends Claim Process • Reporting • Role of Adjuster • Communication with Insured Common Coverage Issues • Use of Panel v. Non-Panel Vendors • Covered v. Non-Covered Loss (e.g. restoration v. betterment) • Ransom: to pay or not to pay? • Business Interruption Damages » Does Policy af
Slide 8: The Role of Breach Counsel
02, The Role of Breach Counsel
Slide 9: Breach Counsel
Breach Counsel • Legal Purpose » Facilitation of vendor engagement for notification and » Attorney Client Privilege/Attorney Work Product remediation services such as credit monitoring and Doctrine identify theft insurance » Regulatory compliance advice • Communication with carrier and insured » Est
Slide 10: Breach Counsel: Pre-incident Mitigation
Breach Counsel • Pre-incident mitigation actions » Incident response planning » Tabletop exercises to test the incident response plan » Conduct gap analysis of data privacy and information security programs » Defend against evolving malicious technology and behavior o Maintain conventional layered d
Slide 11: Breach Counsel: Recommended Response to Ransomware
Breach Counsel- Recommended Response to Ransomware • You should not do the following: • You should do the following: » Do not contact the attacker; • Implement incident response plan; » Do not turn off encrypted systems; • Disable (not power down) affected devices » Do not unplug or power off networ
Slide 12: Policy Placement Issues in the Marketplace
Policy Placement Issues in the 03 Marketplace
Slide 13: Placement Issues
Placement Issues Currently in a “hard” – but stabilizing – market phase. Increased frequency and severity of loss has resulted in: • Increasing premiums • Increasing retentions/deductibles and waiting periods • Decreasing capacity » Micro: almost all carriers limiting capacity for individual applica
Slide 14: Placement Issues: Underwriting Standards
Placement Issues • Underwriting Standards » Multifactor Authentication (MFA) o All remote access (both employee and third party) o All privileged user accounts, including when on premises » Endpoint detection and response (EDR) products » Local administrative rights not granted outside of technology
Slide 15: Questions and Answers
Questions and O Answers (1)
Slide 16: Find your solution at BBrown.com
Find your solution at BBrown.com Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of Hays Companies, Inc, an owned subsidiary of Brown & Brown, Inc. Hays Companies, Inc. only provides insurance related solicitations or services to insureds or in