Two have become one at specialist insurer Beazley with the creation of its cyber & executive risk division.
Combining its capabilities in cyber insurance and executive risk coverage, Beazley said the merged unit will focus on “some of the most challenging risks confronting businesses” worldwide.
Offerings include the company’s flagship cyber product Beazley Breach Response, directors’ & officers’ insurance, as well as cover for employment practices liability and M&A (mergers and acquisitions) transaction liability.
The consolidated division is led by cyber & executive risk head Mike Donovan (pictured), who came onboard Beazley in 2004.
“We brought our expertise in these areas together for two main reasons,” he explained. “First, they are rapidly changing risks that are growing harder for companies to manage. Technological, social, and regulatory changes all impinge on these risks and it is critical for our clients to partner with an insurer that can keep pace with these changes.”
Donovan stressed that Beazley provides not only insurance coverage but also detailed guidance on risk prevention, mitigation, and incident response.
“Second, the stakes are very high,” continued the division head. “We’re protecting critical assets – our clients’ data, their operations, their senior executives, and their corporate reputations.
“A cyberattack can put all of these assets at risk, but a class action lawsuit against a company’s directors can be comparably damaging. And the acceleration and amplification of bad news through social media means that reputational damage can be inflicted faster and with greater effect.”
Beazley’s executive risk team, for instance, insures more than 35% of the Fortune 500 and over half of the firms comprising the Dow Jones Technology Index. Overall, the combined business lines account in aggregate for about a quarter of the insurer’s gross written premium in 2018.