Tom Ride to work with Lloyd’s in order to form a new insurance organization
Tom Ridge, the United States’ first Secretary of Homeland Security, is working with Lloyd’s of London in order to launch a new company that will specialize in cyber insurance. Many of the world’s businesses have become inseparably reliant on technology. Much like the physical world, the digital world is not a safe place and there are many risks that businesses face by embracing technology more completely. Without adequate insurance coverage, companies targeted by malicious digital attacks could face monumental losses.
There may be a dangerous gap in the cyber insurance space
According to Ridge, there is a “dangerous” gap in cyber insurance. The new organization he is forming with Lloyd’s of London is meant to close this gap by providing insurance coverage that accounts for new digital risks. This apparent gap in insurance coverage was highlighted during in the wake of a major data breach at JPMorgan Chase. The attack has reportedly compromised the information of some 76 million and has put cyber insurance into the limelight yet again.
Cyber attacks cost the global economy and estimated $400 billion every year
Approximately 3,000 businesses in the U.S. fell prey to hackers in 2013, according to information from the Center for Strategic and International Studies. The organization estimates that cyber attacks cost the global economy more than $400 billion every year. The need for insurance coverage that can guard against such attacks is becoming more important, but much of the insurance industry has yet to write policies that account for all the threats that exist in the digital world.
Ride Insurance Solutions aims to provide more than just cyber insurance policies
Lloyd’s of London has extensive experience in taking on large and complex risks. The new insurance organization it is backing will be responsible for selling cyber protection policies that will be underwritten by Lloyd’s various syndicates. The new organization will be known as Ridge Insurance Solutions and promises to offer more than just risk assessment services. The organization will also help companies understand the vulnerabilities they have to digital attacks.