IBM Security announced today it is working with the Nordic’s leading insurance provider, If Property & Casualty Insurance Ltd. (If), as part of the company’s new insurance offering, known as Data Crime. As the first cyber-insurance product from a local provider, the offering aims to help If’s Business Area Commercial customers, headquartered in Nordic countries, to manage cyber-attack risk associated with malware, virus, DDoS (Distributed Denial of Service) and hacking incidents.
The number of security breaches occurring has increased, as well as the amount of devices and applications companies use, and the services they provide to customers online. As companies increase connectivity through the cloud and mobile devices, the amount of data leaving the enterprise grows exponentially.
According to IBM’s 2014 Cyber Security Intelligence Index, companies’ security devices and applications detected 91 million security events in 2013, an average of 1.7 million each week per company. The average cost paid for each lost or stolen record containing sensitive and confidential information has increased more than 9 percent, from $136 in 2013 to $145 in 2014, based on the Ponemon Institute’s global analysis on the cost of a data breach. The average total cost of a data breach has increased 15 percent to $3.5 million.
Together, If and IBM help businesses to prepare and defend themselves from cyber-attacks. IBM will provide If with a jointly-developed evaluation questionnaire, in order to evaluate risk potential and a potential policy holder’s overall security status.
IBM Security experts will help If’s claim agents to assess the situation of a company victimized by a cyber-attack, as well as help restore the company to its normal activities. IBM will also be the primary partner available after an incident occurs, helping If’s customers to enhance their security controls and procedures to maintain their insurance protection. Education will also be provided by IBM experts to If’s employees, further improving their ability to assess risk potential and understand how cyber security incidents happen, and how they can be prevented.
“The insurance industry is undergoing a transformation as digitalized services continue to expand raising the need for new solutions to secure business of the digital age. It is important for If to provide security to our customers when the risks are changing. Having a trusted partner with highly skilled experts and deep understanding of global security landscape and readiness to react instantly should an incident occur is vital to us and our customers”, said Line Gjengedal Ruud, Nordic Head of Product & Price Liability and Customer Solutions, If.
“Awareness about cyber threats increases all the time, and we want to provide our customers with the comprehensive expertise and capabilities needed to support them in all areas of enterprise security. This need for protection applies to companies of all sizes, and we are delighted to work together with If to create new possibilities, as well as prepare for security threats”, said Julian Meyrick, Vice President, Security Services, IBM Europe.