New insurance covers cyber risks for the wealthy
Some of the wealthiest Americans can now expand their home insurance packages to include expert advice and technology to protect them against cyberattacks, as well as a variety of complimentary or reimbursable services if they do get hacked.
AIG said it this week would be offering a “Family CyberEdge” product to existing customers of their Private Client Group, as an add-on to the home insurance packages it already sells. The Private Client Group caters to families with a net worth of more than $1 million and includes 40 percent of the individuals on the Forbes 400 list of the richest Americans. Its products are advertised as being suitable for “the most beautiful homes” and include packages for wine and art collections, as well as special services for people who own properties in multiple countries.
The Family CyberEdge package includes a wide range of “risk mitigation services,” including an audit of personal mobile devices, home networks, wireless access points and social media, banking and other secure online accounts. There is training and advice for family members about online security, and continuous monitoring that assesses the security for, and tracks the availability of, personal information online.
Advice provided by fraud and ID theft experts from the identity and data defense specialist CyberScout; and threat intelligence from K2 Intelligence — an investigative, compliance and cyberdefense services firm — rounds out the preventive end of the package.
“The prevalence of smart applications and other technology has created exposure and risks that today’s households are not very well prepared to manage,” said Tracie Grella, Global Head of Cyber Risk Insurance at AIG. “As cyberthreats become increasingly more sophisticated and intrusive, it is important for homeowners to have access to services and protection that help enhance cyber security, and that can react when that security fails.”
In the event of a hack, customers are covered for the costs of cyber-extortion and data recovery; and even professional PR and crisis management services.
The product “reinforces AIG as an industry leader by offering our high net-worth clients the type of cyber coverage employed by large companies to protect against cyber attacks,” said Gaurav D. Garg, President and CEO of AIG Personal Insurance.
The company says it is pioneering a a new kind of cyber-insurance for individuals and families. “CyberEdge is a product that AIG, with its scale and resources, is uniquely capable of providing to individuals to thwart the growing threat of cyber risk,” Garg said.