Brown & Brown, Inc. · NYSE:BRO
Brown & Brown — Cyber Webinar March 26 2024
15 slides from Brown & Brown's conference presentation, Mar 26, 2024
Slide 1: Cyber and Data Security: Claims, Coverage and Marketplace Trends
Cyber and Data Security: Claims, Coverage and Marketplace Trends Presented By: Brown & Brown Cyber Team Brown & Brown Insurance Services, Inc.
Slide 2: Presentation Agenda
Presentation 1 Claim Issues and Trends Agenda 2 The Role of Breach Counsel Policy Placement Issues in 3 the Marketplace 4 Q&A BROWN & BROWN | 2
Slide 3: Panelists
Panelists Aaron Stone Eric Olson Brown & Brown, Moderator Brown & Brown, Panelist Shari Keiser Jennifer Coughlin Starr Companies, Panelist Mullen Coughlin, Panelist BROWN & BROWN | 3
Slide 4: Claim Issues and Trends
01 Claim Issues and Trends
Slide 5: Claim Issues and Trends: Incidence and Types of Claims
Claim Issues and Trends Incidence and Types of Claims • Ransomware » 2023 a “record breaking” year- estimated up to 7,600 impacted organizations » More active criminal groups: 47 up from 35 in 2022 » Average cost rose to $5.13M in 2023, a 13% increase from 2022 • Social Engineering • Business email
Slide 6: Claim Issues and Trends: Third-Party Vendor Breaches
Claim Issues and Trends Third-Party Vendor Breaches • What are they? • How do carriers adjust them? • Immediate impacts » Notification obligations » Contingent Business Interruption • Contractual obligations/Subrogation Opportunities Recent Claims • SolarWinds • MOVEit Transfer • Change Healthcare E
Slide 7: Claim Issues and Trends: Claim Process
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 Notification advice and assistance • Attorney Client Privilege/Attorney Work Product Doctrine • Assessment of consumer and regulatory notification obligations • Regulatory compliance advice • Drafting of statutorily compliant notification letters • Facilitation of vendor
Slide 10: Breach Counsel: Pre-incident Mitigation Actions
Breach Counsel Pre-incident Mitigation Actions • Incident response planning • Conduct third party contract review for liability related to data • Tabletop exercises to test the incident response plan privacy and information security provisions; ensure inclusion of appropriate defense and indemnifica
Slide 11: Policy Placement Issues in the Marketplace
Policy Placement Issues in the 03 Marketplace
Slide 12: Placement Issues
Placement Issues Rates in the cyber market are stabilizing on primary policies, currently averaging a reduction of 1% to 5% with even greater competition on layered programs. • Increasing capacity, which is furthering the softening on pricing • Frequency of cyber claims are still increasing, specifi
Slide 13: Placement Issues: Underwriting Standards
Placement Issues Underwriting standards remain high, with most carriers requiring the following controls to offer terms: • Multi-factor authentication (MFA) » All remote access (both employee and third party) » All privileged user accounts, including when on premises • Endpoint detection and respons
Slide 14: Questions & Answers
Questions O & Answers fa
Slide 15: 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