Amazon recently announced that they are entering the cybersecurity insurance market, a move which could be game-changing for this corner of the insurance industry.
If you were not aware, cyber insurance has suddenly become difficult to obtain, extremely expensive, and severely sublimited for the most critical risks that asset managers face – namely wire fraud. Yet Amazon will provide a quote in just two days.
What’s unknown at the moment is the level of coverage that Amazon will be able to secure for its users. What we do know is that Amazon spent two and a half years digging into this market, and their insurance offering is a development that could be yet another market disruption – for which AWS is famous. And at the same time, the SEC continues to recommend that Registered Investment Advisors evaluate cybersecurity insurance to limit their risk – to include proposing that specific questions related to cybersecurity insurance coverage be included in the proposed new “Form ADV-C”. To take advantage of Amazon’s new insurance offering, SEC registrants will need to be Amazon customers as the service will apply to only AWS customers; basically, the AWS Security Hub will generate a report that insurance companies can use as the basis for a quote.
For more information related to BW Cyber’s cybersecurity insurance coverage evaluation services, contact us.
