Irish carrier expands into North American market

An Irish insurance carrier announced this week it has established a North American cyber and technology risk unit to be located in New York City.

Risk Management News

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An Irish insurance carrier announced this week it has established a North American cyber and technology risk unit to be located in New York City.

The Dublin, Ireland-based carrier XL Group has previously provided cyber and technology errors and omissions coverage through its “select professional” business unit, which provides professional liability insurance.

“With this new unit, we're putting our cyber risk team in better position to grow and develop the cyber insurance products that businesses need now and will demand into the future,” says Greg Hendrick, chief executive of XL Group's global insurance operations, who adds that the North American operations will provide coverage for data protection and privacy risks “both for third-party claims and first-party mitigation costs.”

Cyber crime and the liability insurance associated with it has become a booming market, with the cost of cyber crime worldwide pegged at more than $484 billion.

“Cyber crime is a tax on innovation and slows the pace of global innovation by reducing the rate of return to innovators and investors,” says Jim Lewis of the Center for Strategic and International Studies. “The effect of cyber crime is to shift employment away from jobs that create the most value. Even small changes in GDP can affect employment.”

In addition to its New York office, the new cyber and technology risk unit has  underwriting offices in Chicago, Dallas, Atlanta and Washington, D.C.

Chief Underwriting Officer John Coletti, who was previously the cyber and technology underwriting manager in XL Group's select professional business unit, will lead the new unit.

"As a standalone business unit,” says Coletti, “we will have great flexibility to develop innovative cyber risk solutions for our diverse client base while having the focus required to build a profitable book of business.”

 

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