Through the new partnership, Google Cloud, Allianz Global Corporate and Specialty (AGCS) and Munich Re plan to cover cyberattacks and related risks for cloud customers – initially those US-based companies with annual revenue between US$500 million and $5 billion.
The partnership gives the insurers special access to data to see what controls are in place at client firms to help them price the risk. “This is extremely key. This is data that we as insurance carriers traditionally have not had access to,” said Thomas Kang, Head of North American Cyber, Tech and Media at Allianz’s AGCS unit.
In addition to cyber insurance cover, cloud customers are also able to find weak points in their cloud security through Google’s Risk Manager tool. Subsequently, by reducing their vulnerabilities, customers will be able to optimise their insurance costs – Google notes that the price of insurance will be directly tied to how well customers secure their information technology environments.
“Bringing the Risk Protection Program to market is possible due to our strong partnership with leading cyber insurers, Allianz and Munich Re, who collaborated with us to develop this groundbreaking programme,” said Google Treasurer Juan Rajlin. “We believe the programme provides our Google Cloud customers with both access to superior cyber protection, as well as a more efficient insurance procurement process.”
Cyber insurance cover for the healthcare market?
Cyber breaches have been increasingly reported in the healthcare sector in recent times: in February, French health insurance company Mutuelle Nationale des Hospitaliers was hit by a ransomware attack, which disrupted the company's healthcare operations; while a report from late 2020 highlighted that the surge in telemedicine had played a major role in the increased risk of cyber attacks.
Google, Allianz and Munich Re’s new offering is prime for the picking – and no doubt Google will soon find a way to extend its cyber insurance into the healthcare sphere – especially working so closely with a firm that has arms in the health insurance market. Keep an eye on that.