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Google offers cyber insurance from cloud users from Allianz, Munich

Google offers cyber insurance from cloud users from Allianz, Munich
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Google is working with two global insurers to cover cybercrime violations and related risks for businesses using its cloud services, the first time a major provider has opened such insurance for its customers, the companies said on Tuesday.

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Major insurers have been closely monitoring cyber risks for years, but the link between Google, Allianz and Munich Re gives insurers special access to data to see what controls exist at client firms to price the risk.

“It’s very important. This is data that we as insurance providers have traditionally not had access to, ”says Thomas Kang, head of North American cyber, technology and media at Allianz’s AGCS unit.

Munich Re and Alliance on Google Cloud Project

Google Cloud enables organizations to retrieve an individualized report on their security position on the platform using their new risk management tool. Munich Re and AGCS have developed the Cloud Protection + policy exclusively for Google Cloud customers. The enhanced data of the risk manager tool facilitates a differentiated risk.

The policy is initially offered to Google Cloud customers in the US with revenues of between US $ 500 million and US $ 5 billion. At a later stage, the offer will be extended to users in other revenue segments and countries.

Gartner Research says by 2024, more than 45% of IT spending will shift from traditional solutions to the cloud.

“It’s optimal for peers in the industry to tailor products that move the needle in today’s corporate environment,” said Jody Yee, managing director of Alternative Risk Transfer, AGCS.

“In addition to the immediate benefit for Google Cloud customers, the collaboration will contribute to the further improvement of Munich Re’s cyber risk modeling,” said Stefan Golling, member of the management of Munich Re.

The Alliance Trends in cyber risk the report notes that business interruption is the main cost driver behind cyber claims; it accounts for almost 60% of the value of all claims.

The initial target customers are US businesses with an annual revenue of between $ 500 million and $ 5 billion.

“We did not want to get out of the box. But the plan is obviously to expand this offering very quickly as well as down in the revenue scale, ”said Bob Parisi, head of cyber solutions in North America for Munich Re.

The insurers, both headquartered in Munich, will cover up to $ 50 million in potential losses.

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The data provided by the customers means that the insurers will extend the cover of lost income to a full year, from a maximum of six months in advance.

(Reported by Tom Sims; edited by Jan Harvey)

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