Marsh launches insurance framework to ease potential disruptions from cyber attacks

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Insurance firm Marsh Risk is launching a cybersecurity policy framework for endorsing payments, in an effort to streamline the financial compensation process to avoid business interruption losses and tackle incident response costs. “Marsh Risk, a business of Marsh and the world’s leading insurance broker and risk advisor, today announced the launch of a cyber policy endorsement framework designed to accelerate clients access to funds following a cyber incident,” according to a June 15 Marsh release. Marsh Risk is a global insurance broker and risk management firm. According to Marsh, the new policy framework offers a “clear, negotiated pathway for advance and interim payments and enables insurers to pay approved incident‐response firms directly, so clients don’t have to front early recovery costs during a crisis.” The framework also mandates “interim payments for undisputed business interruption losses,” according to Marsh, and “sets a standardized, prioritized evidence package to shorten insurer review times and align expectations among policyholders, brokers, and insurers.” “The policy language clarifies when response costs and [business interruption] losses are eligible, reducing ambiguity that often slows settlements,” the release says. Marsh has secured bespoke accelerated payment endorsements with cyber insurers AIG, Beazley, Canopius, CFC and QBE through the framework, according to the release. Marsh is “actively working to expand carrier participation and extend the framework to additional markets globally,” according to the release. The insurance firm has also incorporated the framework into its own proprietary primary cyber product, Cyber CAT . A 2024 cyber attack against Change Healthcare prompted stakeholder concerns over the financial burden placed on the healthcare providers, resulting from stalled payments to physician practices. The incident resulted in the Department of Health and Human Services allowing flexibilities to assist state Medicaid agencies in offering support and access to healthcare coverage. The Marsh framework comes as security researchers are calling for the government to stand up a federal backstop insurance program to help mitigate risks of a potential cascading cybersecurity incident. Greg Eskins, global cyber product leader at Marsh Risk, said, “Settling cyber business interruption claims can be a protracted, documentation-heavy process.” Eskins added, “Our framework is aimed squarely at the operational and financial realities our clients face when they are trying to recover from a cyber incident. By minimizing our clients’ out-of-pocket expenses, getting money into their hands sooner, and by reducing complexity regarding the documentation insurers need, we help clients focus on recovery, not paperwork.” -- Jaden Beard ([email protected]) Article Type: Daily News Jaden Beard tags: insurance Weight: -20