Mon. Apr 15th, 2024

Editor’s Note: This article discusses an innovative new cyber insurance product launched by French insurer Descartes Group aimed at providing swift financial relief to small and medium enterprises impacted by ransomware attacks. Titled “Parametric Cyber Insurance Coverage Breaks New Ground in Insurance Innovation,” it is the world’s first parametric cyber policy that makes fixed daily payments upon confirmation of an encryption event by a third party, allowing faster claims settlement.

The product represents a pioneering move in the evolving cyber insurance space as insurers grapple with rising threats like ransomware. In the article, key executives at Descartes Group, including co-founder Tanguy Touffut and product heads Louis Bollaert and Lopold Larios, shared their thoughts, rationale, and ambition behind this timely offering.

Positioning it as an essential shield for French SMEs, many of whom lack cyber coverage currently, Descartes eyes a significant share of the domestic market before expanding across the EU. The launch reiterates the company’s commitment to harnessing technology, data, and algorithms to advance insurance solutions against pressing new-age risks like cybercrime.

We felt this innovative parametric modeling approach to cyber insurance warrants coverage, given the vulnerability of small businesses to ransomware attacks. The Descartes Group offers key insights into how insurers can reinvent themselves to stay relevant amidst the rapidly evolving risk landscape. We will continue tracking such innovations that promise to bridge the protection gap.


Content Assessment: Parametric Cyber Insurance Coverage Breaks New Ground in Insurance Innovation

Information - 92%
Insight - 90%
Relevance - 90%
Objectivity - 93%
Authority - 92%

91%

Excellent

A short percentage-based assessment of the qualitative benefit expressed as a percentage of positive reception of the recent article from ComplexDiscovery OÜ's cybersecurity beat titled, "Parametric Cyber Insurance Coverage Breaks New Ground in Insurance Innovation."


Industry News – Cybersecurity Beat

Parametric Cyber Insurance Coverage Breaks New Ground in Insurance Innovation

ComplexDiscovery Staff

In a pioneering step, Descartes Insurance has revolutionized the cyber insurance landscape by launching the world’s first parametric cyber insurance product, aptly named ‘Cyber Shutdown Cover,’ for corporate clients in France. This pioneering policy activates upon confirmation of a ransomware-induced encryption incident by a third-party cyber specialist, offering swift fixed daily compensation to affected small and medium-sized businesses in sectors like manufacturing and retail. Cognizant of the severity posed by ransomware, Louis Bollaert of Descartes emphasizes how this innovation speeds up post-attack recovery and incentivizes cybersecurity investments in future coverage. Eyeing a significant slice of the French market and future expansion into other EU territories, Bollaert’s ambition is matched only by Descartes’ proficiency in parametric modeling, which finely tailors the interruption claim amounts against ransomware-induced operational halts.

Lending insight into the pressing need for such coverage, Lopold Larios of Descartes points to a concerning statistic from the French Risk Management Association: the staggering absence of cyber coverage for the majority of French SMEs and the devastating economic blow of shutdowns, which average a 21-day halt and substantial financial losses. Acknowledging the forthcoming NIS2 Directive set to elevate cyber defenses within the EU, Larios advocates the timeliness of Descartes’ Cyber Shutdown Cover as an essential shield for firms, particularly those with a history of cyber afflictions.

Committed to intertwining the technological prowess of data and algorithms into its business model, Descartes, co-founded by Tanguy Touffut, has embraced this momentous move into new risk sectors by applying its climate expertise to cybersecurity. The Descartes Group’s fusion of insurance wisdom, climatology acumen, and data science reiterates the transformative potential of tech in the insurance domain, seeking to not only assuage the friction but also reinstate trust within the market.

Elsewhere in news from ComplexDiscovery OÜ’s sustainable development beat, Howden’s introduction of a unique insurance facility covering CO2 leakage from CCS facilities advances the global charge towards net zero. Showcasing Howden’s own inventive prowess and the backing of SCOR at Lloyd’s, this insurance aims to catalyze crucial financial backing for CCS projects while encompassing liability for environmental damages and loss of carbon credit revenues. Highlighting the evolution and escalating demand within the carbon capture market and the consequent need for effective protective measures, Howden, led by Glenn O’Halloran, proposes a solution to bolster investor and lender confidence in the CCS realm. As such, Rowan Douglas of Howden lauds this advance as a testament to the insurance industry’s vital role in accelerating eco-friendly transitions, while John Neal of Lloyd’s, alongside Romain Launay and Marie Biggas of SCOR, extols the collaborative spirit that brings to light progressive risk transfer solutions to secure energy transformation.

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