Cyber ECHO brings greater stability to the excess cyber insurance market, Marsh says
Marsh has launched a new global excess cyber risk facility that aims to provide more reliable insurance coverage for companies.
Following a series of high-profile cyber losses, rates in the cyber market have more than doubled in the US over the past 12 months and some underwriters have limited capacity.
Marsh’s Cyber ECHO brings greater stability to this market with up to $50m in ‘follow form’ coverage for clients of any industry and risk profile around the world.
Underwritten by Lloyd’s syndicates, the facility is designed to respond to the terms and conditions outlined in the primary cyber policy to help mitigate coverage ambiguities that can lead to costly disputes and/or delays in claims payments.
Cyber ECHO also includes a pre-priced option that allows insureds to reinstate policy limits, should they experience a cyber event during the policy period that has the potential to exhaust their policy limits.
“While overall capacity in the cyber market remains abundant, the excess market is highly volatile,” said Bob Parisi, US cyber product leader at Marsh. “With Cyber ECHO, we are providing clients of all industry sectors with an efficient and more predictable excess coverage solution.”
Leslie Kurshan, head of product development for the Financial and Professional (FINPRO) Practice at Marsh UK, added: “Inconsistent wordings and varying terms and conditions between primary and excess insurance policies can contribute to significant delays in claims being paid and may even result in the failure to recover costs from insurers. Cyber ECHO helps to mitigate these issues, and is designed to aid in swift recovery from a loss.”