Global specialty reinsurer Canopius has announced the launch of a suite of cyber property products for medium to large corporations. The Canopius Cyber Property Damage Product Range (PDPR) will be sold on a consultative basis and in close collaboration with brokers, the company said.
The new product range replaces cyber cover excluded from property policies following regulatory action to address the issue of “silent cyber.” It also protects clients against risks associated with continued reliance on technology, expanding 5G coverage and an increase in automation, connected buildings and the use of the Internet of Things, Canopius said.
The firm added that it created the new product suite based on an established rating model that combines historical data from the property market with cyber expertise. “This has created a consistent pricing strategy across the cyber property damage book,” the company said.
“The products available from Canopius deliver bespoke coverage to clients that provide clarity and tackle the complexities created by the removal of cyber coverage from their traditional property insurance policies,” said Camilla Walker, cyber underwriter at Canopius. “The range of products means Canopius can continue to address clients’ exposures as they evolve, whether that be due to a business change or the application of further, or different, cyber exclusions within other insurance products.”
There may be as many as 43 billion connected devices by 2023, Canopius said. Many of these will likely be low-complexity devices used to monitor and control buildings and their environments. Such low-complexity devices could create a new entry point for cyber criminals.
“Regulatory intolerance for ‘silent cyber’ plus hardening property rates has created a cyber property coverage gap,” said Matt Northedge, global head of cyber at Canopius. “These products endeavour to define this silence to help clients carve some of that back. It also mitigates against a multitude of potential risks stemming from the increased reliance on technology and automation across organisations’ computer networks.”
The PDPR product line provides up to a US$25 million line and offers brokers a streamlined application process and access to seven underwriters in London, Canopius said.