RPS Technology & Cyber
For more than 20 years, the Technology & Cyber experts at RPS have helped agents insure high-tech businesses. From traditional IT consulting and software companies to cutting-edge firms in video game development, online media publishing and social networking, RPS is a nationally recognized leader in this rapidly changing environment.
Drawing on their vast experience in systems integration and the online environment that is home to many hi-tech businesses, RPS established itself as an expert in the field of Privacy and Network Securty Liability for “brick-and-mortar” businesses as well. Exposures such as hacking, viruses, denial of service attacks and social engineering that seem new to traditional businesses have long been a part of RPS’ vocabulary and experience.
Significant Cyber Insurance Underwriting Changes Better Reflect Today’s Risks: RPSROLLING MEADOWS, IL – Oct. 4, 2021 – As demand for cyber insurance coverage continues to accelerate in 2021, the insurance market has put on the brakes, primarily due to the challenges of the COVID-19 pandemic and the increasing severity and frequency of ransomware attacks. Even with the right cyber security mitigations in place, organizations are still finding it impossible to secure 2021 coverage at 2020 rates, according to the new U.S. Cyber Insurance Market Outlook report by Risk Placement Services, the E&S wholesale broker and managing general agency. Carriers are strategically increasing premiums, some as high as 300% at renewal, and lowering coverage limits on industry classes that have been hit hardest by cybercrime and cyber extortion over the past year. Those classes include education, public entity/government, healthcare, construction and manufacturing. Capacity restrictions that started to grip the market in 2020 have intensified. Insurers that were more than eager to issue $5 million cyber liability policies last year have scaled back to limits of $1-3 million in 2021, even on renewals. As a result, building a cyber liability coverage tower has become more challenging, requiring additional carriers to reach the desired limits. “This year’s changes in capacity, underwriting standards and even increases in premium were a necessary evolution,” said RPS National Cyber Practice Leader Steve Robinson. “Cyber insurance underwriting has become more reflective of today’s risks.” Those risks include the proliferation of ransomware in 2020, which many attribute to the work-from-home environment during the COVID-19 pandemic. That opened up technological vulnerabilities for hackers to penetrate. During this time, claims frequency and severity also began to climb at an unprecedented rate, and losses often far exceeded actuarial estimates. Insurance companies, therefore, began to further develop models contemplating the unanticipated impact of ransomware claims on their bottom lines. “Ransomware has become a two-headed monster,” said Robinson, referring to cyber attackers demanding payment for a decryption key, as well as payment to prevent the release of customer data and nonpublic information. “Double extortion has become a contributing factor in cyber claim severity over the past year,” he said. As a result, underwriting questions have become more strategic and better reflect the current cyber exposures. Even on renewals, insurance companies are continually tweaking their inquiries about a company’s information security safeguards and practices through supplemental application forms for ransomware and business interruption (BI). Multi-factor authentication (MFA) has become a must-have to qualify for cyber coverage, as it’s one of the most effective ways to prevent a cyber extortion event, according to Robinson. Insurers are increasingly incorporating the same scanning technology used by hackers into their own underwriting processes, and/or applying sublimits or exclusions on cyber extortion and BI resulting from ransomware events to better control their loss ratios. “As a result of industry underwriting and mitigation efforts, a better balance between cyber insurance coverage supply and demand is expected as we draw closer to 2022,” said Robinson. The full report is available at the following link: U.S. Cyber Market Outlook ### About Risk Placement Services Risk Placement Services (RPS) is one of the nation’s largest specialty insurance products distributors, offering valuable solutions in wholesale brokerage, binding authority, programs, and standard lines, plus specialized auto through its Pronto Insurance brand. Headquartered in Rolling Meadows, Illinois, RPS has more than 80 offices nationwide. For more information, visit RPSins.com. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube. Media Contact: Sara Carlson 630-605-6935 firstname.lastname@example.orgRead More
Risk Placement Services’ Tech E&O/Cyber Risk Product Now Available on its Online PlatformROLLING MEADOWS, IL – July 7, 2021 – E&S wholesale broker and managing general agency Risk Placement Services (RPS) today announced that its Technology Errors and Omissions (E&O) product with Cyber Risk coverage is now offered on the online RPS Small Business Platform. Available to quote-bind-issue online in just two minutes, Tech E&O/Cyber Risk covers legal fees and other related costs should a product or service fail or fall short of an expected outcome. It is designed for communications, social media, software, technology manufacturing and technology services companies. Manny Cho, Executive Vice President, RPS Executive Lines, said: “A combined Tech E&O/Cyber Risk policy will cover a loss, whether it’s deemed to be a result of services being provided or due to a cyberattack, eliminating coverage gaps that exist when you have two different policies. Making Tech E&O/Cyber Risk available online also provides agents and brokers a convenient, streamlined purchasing process without sacrificing the quality of coverage.” In fact, the Tech E&O/Cyber Risk product provides the same expansive cyber coverage found in standalone cyber policies, such as: business interruption coverage including cyber attack and system failure; cyber deception loss; and reputational loss and bricking coverage. “With our substantive E&O and cyber risk expertise, as well as our exclusive distribution through the RPS Small Business Platform, including access to the non-admitted market, RPS can help agents and brokers come through for their clients,” Cho said. Other highlights of the Tech E&O/Cyber Risk product include: Broad definition of technology products and services Broad-form contractual liability coverage Enterprise media liability coverage Blanket professional services liability coverage (certain classes excluded) Privacy regulation proceedings and fines coverage at full policy limits Tech E&O/Cyber Risk coverage includes liability limits of up to $5 million. The product is available nationwide. To be eligible for coverage, businesses must generate no more than $25 million in annual revenues and have no prior tech E&O/cyber claims or losses. ### About Risk Placement Services Risk Placement Services (RPS) is one of the nation’s largest specialty insurance products distributors, offering valuable solutions in wholesale brokerage, binding authority, programs, and standard lines, plus specialized auto through its Pronto Insurance brand. Headquartered in Rolling Meadows, Illinois, RPS has more than 80 offices nationwide. For more information, visit RPSins.com. Follow RPS on Facebook, Twitter, LinkedIn, Instagram and YouTube.Read More