Global insurance giant Lloyd’s of London has recently announced the launch of a cyber insurance consortium aimed at revolutionizing the cyber insurance market. This consortium will establish a shared risk facility, offering qualified organizations exclusive rates, simplified insurance processes, and comprehensive coverage.
A shared risk facility is essentially a collaboration among various insurance firms who agree to share the underwriting risk of policies. In this case, the consortium consists of a global network of Moody’s-recognized AA-rated insurers and is designed to expand as more insurers join the group. By adopting this model, insurers can provide improved and more consistent insurance products and coverage, as reported by HITRUST.
Organizations that are in search of cyber insurance and hold HITRUST certifications are eligible for discounted insurance rates through this program, including an initial credit of 25% on premiums. Additionally, the certification streamlines the underwriting process and simplifies the application process. HITRUST stated in a release that some policies are now being underwritten in as little as one week.
The new policies established under the consortium feature a single-page exclusion model, ensuring that participating organizations have access to a greater capacity as the consortium expands. This will guarantee that they are equipped with insurance products that cater to their specific needs.
Josh Ladeau, CEO of Trium Cyber and the underwriting lead for this initiative, expressed his thoughts on the integration of HITRUST certification into their underwriting process. He mentioned that this allows for tailored cyber insurance solutions that not only acknowledge but also reward organizations for their dedication to strict security standards.
In order to facilitate this consortium, HITRUST has developed a secure API that grants insurers access to detailed information regarding an organization’s HITRUST r2 certification. This ensures that insurers receive structured and consistent assessment data to streamline the underwriting process. There are intentions to broaden eligibility in 2025 to encompass other certification types, potentially including HITRUST’s AI Security Certification.
The launch of this cyber insurance consortium signifies a significant step forward in the cyber insurance market, providing a collaborative approach to underwriting and risk-sharing. With exclusive rates, simplified processes, and enhanced coverage, qualified organizations can now benefit from this innovative initiative spearheaded by Lloyd’s of London.