Crawford & Company® (NYSE: CRD-A and CRD-B), the world’s largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers and corporations, and leading global professional services firm Aon plc (NYSE: AON), has published the Aon | Crawford® Guide to Successfully Managing Cyber Claims.
With instances of ransomware attacks increasing as cyber criminals become more adept at targeting the “economic pain points” for different organizations to maximize financial returns, Aon and Crawford have pooled their combined cyber experience to produce a detailed guide to help organizations better mitigate cyber risk and manage insurance claims more effectively in the event of an incident.
The guide examines how advances in cyber-attacks, particularly in relation to ransomware, are resulting in a rapid inflation in loss frequency and severity, while simultaneously increasing the complexity of managing the business interruption impact. Given the associated costs and the reputational damage of such an incident, the guide states it is imperative that organizations focus not only on cyber risk prevention, but also preparedness and response.
Aon and Crawford call upon organizations to create a preparedness posture for cyber events and potential exposures, detailing management roles post incident, establishing what specialist support may be required to manage the incident, including IT forensics, forensic accounting, and legal, and ensuring protocols are in place to ensure a rapid response.
The guide also examines the ramifications of the evolving threat environment on the cyber insurance policy and advises organizations to review existing policies to understand how coverage will respond in the event of an incident. Further, it details how early engagement with the insurer, direct correspondence, approvals where required, and agreement to certain causes of action can help ensure a smoother journey to resolution in the event of a claim.
Commenting on the guide, Paul Handy, global head of Cyber, at Crawford, said: “Cyber-related business interruption is a costly and potentially ruinous expense. Organizations should therefore focus not only on risk prevention, but also preparedness in the event of a cyber incident.
“A key part of this is understanding the claims process. By engaging with a loss adjuster with full time responsibility to support the insured through the assessment and quantification, policyholders can be much more confident in achieving their desired outcome.”
Neil Harrison, Global chief claims officer at Aon, said: “In Aon's 2021 Global Risk Management Survey, cyber risk was ranked as the number one current and predicted future risk globally. Organizations should be ready to work in collaboration with their loss adjuster, together with their broker, insurer and other advisors to manage the claims process and help optimize the outcome both in the immediate crisis phase and in the recovery. We are committed to helping our clients make better decisions when navigating this increasingly complex risk and come through an incident with their balance sheet and, just as importantly, reputation intact.”
Aon’s Cyber Solutions offers holistic cyber security, risk and insurance management, investigative skills, and proprietary technologies to help clients uncover and quantify cyber risks, protect critical assets, and recover from cyber incidents.
Access the report here
Based in Atlanta, Crawford & Company (NYSE: CRD-A and CRD-B) is the world’s largest publicly listed independent provider of claims management and outsourcing solutions to carriers, brokers, and corporates with an expansive global network serving clients in more than 70 countries. The Company’s two classes of stock are substantially identical, except with respect to voting rights and the Company’s ability to pay greater cash dividends on the non-voting Class A Common Stock (CRD-A) than on the voting Class B Common Stock (CRD-B), subject to certain limitations. In addition, with respect to mergers or similar transactions, holders of CRD-A must receive the same type and amount of consideration as holders of CRD-B, unless different consideration is approved by the holders of 75 percent of CRD-A, voting as a class. More information is available at www.crawco.com.
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