Raising the coverage bar
Multinational risk advisor and brokerage Willis Towers Watson has introduced CyFly, which it describes as ‘an innovative and flexible insurance solution specifically tailored to cover cyber exposure affecting the airline industry’. This follows the Willis Towers Watson Industry Risk Index’s recent identification of failure of critical IT systems as the most significant risk facing the global aviation industry.
The company says that it recognises that airlines are exposed to significant financial and reputational damage in the event of a network incident caused by people or technology risk, and explains that CyFly forms part of its integrated approach to cyber risk by focusing on the human element associated with risk and technology.
According to Willis Towers Watson, CyFly is available globally and includes the following coverages specific to the airline market: extension of business interruption referable to third parties; cover in respect of a broad range of technology and non-technology providers such as global distribution systems, baggage processing, aircraft maintenance, fuelling and catering and airport security; network business interruption cover at a pre-agreed minimum value per flight cancellation and claims preparation costs cover; and cover for aviation regulatory fines and compensation in relation to specific cyber incidents.
“CyFly has been specifically designed to respond to the cyber risk concerns of our aviation clients,” says Glyn Thoms, Willis Towers Watson’s executive director, global professions. “With our in-depth understanding of the human element of risk, in conjunction with feedback and data from clients, we are developing industry-specific cyber solutions.”
John Rooley, CEO of Willis Towers Watson Global Aerospace, comments: "The risk landscape is evolving for our clients and we have been listening to and gathering extensive feedback through initiatives such as the Willis Towers Watson Risk Index and forums such as our recent airline conference held in Singapore. Equipped with extensive data and insight we are uniquely positioned to interpret succinctly what our clients want. Our expert cyber colleagues have worked seamlessly with our Global Aerospace team to launch this innovative product which raises the bar of coverage for this sector.”
Rooley adds that he believes the launch of CyFly to be a defining moment for the aviation industry in terms of the approach to cyber risk within an enterprise risk management framework.