Recognizing the evolving cyber risk targeting personal cars and trucks, specialty insurer HSB has introduced new coverage designed to protect against cyberattacks on vehicles.
HSB’s Cyber for Auto aims to address the growing need for coverage as the number of connected vehicles continues to surge across US highways, with more of them being targeted by hackers and other cyberthreat players.
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The advent of connected technology in vehicles, including sensors and computer systems in models post-2020 and some older versions, has opened new avenues for cybercriminals. HSB explained that syncing smartphones to vehicles, while enhancing convenience, also raises the stakes for personal data security, potentially exposing sensitive information to unauthorized access and misuse.
Despite hacking incidents being relatively uncommon at present, the expectation of vehicles becoming prime targets for ransomware, identity theft, and other cyber issues is growing. HSB’s research underscores the public’s concern, revealing that 72% of consumers have connected their phones to their vehicles, with 60% storing personal data within their vehicle’s computer systems.
Among these figures, a significant portion express apprehension about the safety of their personal information, particularly those owning plug-in electric vehicles.
James Hajjar, chief product and risk officer for the treaty division of HSB, a Munich Re company, expressed concern over the increasing integration of new technologies into modern vehicles.
“Automakers continue to integrate new technologies into today’s vehicles,” Hajjar said. “With each added system or connection, there are new vulnerabilities that hackers and other cyber criminals can exploit. Cyber for Auto helps insurers and their customers stay ahead of these new cyber exposures.”
The specialist insurer said that this new policy was designed to combat cyber threats, including malware, viruses, and ransomware attacks, along with solutions for identity recovery irrespective of whether the breach originates from the vehicle. The policy extends to cover costs associated with towing, labor, and alternative transportation while the vehicle’s systems are being repaired.
HSB also plans to make Cyber for Auto available as an add-on to the policies of partnering insurance companies.
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