Chubb introduces new insurance product focused on cybercrime and fraud

Cyber Insurance industry popularity

Chubb aims to provide health care provider with new protections

The Chubb Group of Insurance Companies, the eighth largest property/casualty insurer in the U.S., has announced the launch of a new insurance product that is aimed at helping small to mid-sized health care organizations manage cybercrime and fraud. Data breach has been a serious issue for many industries and may soon become a serious problem in health care. Per the Affordable Care Act, most health care records are to be stored electronically. The law also paves the way for a variety of other services to be conducted online, which presents an opportunity for hackers to steal information.

Chubb introduces FoCyber InsurancereFront Portfolio 3.0

The new product, called ForeFront Portfolio 3.0, provides health care organizations with eight different options for coverage. These include cyber liability insurance, directors and officers (D&O) liability insurance, as well as others. Chubb notes that the product is designed to account for the risks that are emerging in the health care organization today. The Affordable Care Act has caused several changes in the industry and the insurer is keen to see health care providers are prepared to mitigate any dangers they may face in the future.

Data breach and fraud could be serious issues

With medical records being stored electronically, the potential damage a data breach could cause is too much to ignore. Several companies have, in the past, been targeted by hackers and have lost millions of dollars in the wake of major data breach. Chubb notes that insurance could provide some protection against these attacks and fortify health care organizations against financial loss. The D&O coverage provided through the product could also help cover the cost of litigation in the event of fraud or if organizations face penalties for their noncompliance with government standards.

Changing landscape calls for more protection

The health insurance and health care systems of the U.S. have undergone a great deal of change. This change has brought about new risks that organizations must protect against. As such, Chubb is one of the insurance companies working to provide protection against these emerging risks and ensure health care providers are capable of bouncing back if they should be targeted by hackers of insurance fraud.

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