#London #United Kingdom #Lloyd's of London #HITRUST #Cyber Insurance

Introduction

In a groundbreaking development for the cyber insurance industry, Lloyd’s of London has partnered with HITRUST to unveil an innovative consortium aimed at shaping the future of cyber insurance. This collaboration marks the first-of-its-kind shared risk facility, which is designed to provide HITRUST-certified organizations with access to advanced insurance options, enhanced coverage, and more competitive rates.

Background on HITRUST and Cyber Security

HITRUST has long been recognized as a leader in information security assurances for risk and compliance management. Their proven methodologies have established a standard for measuring and mitigating information risk within organizations. With the escalating threat of cyberattacks, businesses are under increasing pressure to adopt robust cybersecurity practices to protect their sensitive data and maintain trust with clients and stakeholders.

Formation of the Consortium

The new consortium, backed by a network of globally recognized AA-rated insurers, represents a significant shift in how cyber risks are assessed and managed. This initiative not only enables organizations that are HITRUST-certified to secure insurance with enhanced terms and exclusive rates but also creates a collaborative environment where multiple insurers can share underwriting risk. This collective approach is expected to stabilize the insurance market by recognizing the reduced risk associated with HITRUST-certified organizations.

Key Benefits of the Consortium

Organizations that meet HITRUST certification standards can expect numerous advantages from this consortium:
1. Lower Insurance Costs: Certified organizations will see market-leading rates and favorable terms, starting with a 25% credit on premiums.
2. Simplified Insurance Process: By utilizing data from HITRUST certification, insurers can streamline underwriting procedures, reducing the time taken to issue policies significantly, with some policies being underwritten in just a week.
3. Comprehensive Coverage: The new policies are designed to be clear and adaptable, built on a single-page exclusion model, which simplifies the understanding of coverage limits and enhances adaptability to organizational needs.
4. Scalable Protection: As the consortium expands, the capacity for coverage will grow, ensuring that organizations can evolve their insurance solutions as their needs change.
5. Recognition for Security Investments: Organizations will be able to demonstrate their commitment to cybersecurity excellence, gaining recognition from partners, clients, and regulators.

Impact on Cyber Insurance Landscape

This consortium sets a new benchmark for cyber insurers by aligning rigorous security practices with insurance solutions. According to Blake Sutherland, Executive Vice President of Sales and Business Development at HITRUST, the collaboration enhances transparency and consistency in measuring residual risk, thus providing insurers with the confidence needed to offer better coverage options.

The recently released 2024 Trust Report stated that less than 1% of HITRUST-certified entities experienced a breach within the last two years, showcasing the efficacy of the HITRUST assurance program in mitigating risks, which further justifies the advantages offered through this consortium.

The Role of Technology

A significant component of the consortium's success lies in the development of a secure API by HITRUST. This API facilitates access to detailed information about an organization’s HITRUST r2 certification via their Results Distribution System (RDS). This innovation provides a structured, streamlined assessment process, ensuring more accurate underwriting and better insurance products tailored to organizations’ needs.

Josh Ladeau, CEO of Trium Cyber, the underwriting lead for this initiative, emphasized the importance of integrating HITRUST certification into underwriting processes, stating it not only tailors but also rewards organizations committed to strict security measures.

Conclusion

The launch of this innovative cyber insurance consortium by Lloyd's of London and HITRUST stands as a pivotal step in transforming the insurance landscape. By offering enhanced coverage options and significantly reducing costs for HITRUST-certified organizations, the consortium addresses the pressing need for robust cyber risk management in an era of escalating threats. Organizations are encouraged to pursue HITRUST certification to leverage these groundbreaking insurance offerings and safeguard their digital landscapes effectively.

For more details on how to initiate the HITRUST certification process and take advantage of these benefits, visit HITRUST's website.