Specialist insurer Beazley has created a cyber and executive risk division to keep pace with rapidly changing risks in these areas.
The business lines that have been combined within the new division accounted in aggregate for just over a quarter of Beazley's gross written premiums in 2018 - and comprise some of its fastest growing products.
These include the company's flagship cyber product, Beazley Breach Response (BBR), and M&A transaction liability insurance.
Since Beazley’s gross written premiums stood at $2.3bn in 2017, this means the combined cyber and executive risk division currently represents around $575m of the insurer’s premium base.
The new division is led by Mike Donovan who has been with Beazley since October 2018.
Beazley justified the decision by stressing its expertise in cyber insurance and executive risk.
According to the insurer, its executive risk team currently insures more than 35% of the Fortune 500 and more than half of the companies comprising the Dow Jones Technology Index.
Donovan said the acceleration and amplification of bad news through social media means the stakes are very high for companies in the current environment.
“We're protecting critical assets - our clients' data, their operations, their senior executives, and their corporate reputations. A cyber-attack can put all of these assets at risk, but a class action lawsuit against a company's directors can be comparably damaging,” said Donovan.
Directors’ and officers’ (D&O) liability cover is also gaining more profile as the roles and responsibilities of corporate boards are being increasingly scrutinised amid widespread revelations of workplace sexual misconduct.