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HomeBusinessCoalition Raises $175M to Build Leadership in Cyber Insurance Market 2022

Coalition Raises $175M to Build Leadership in Cyber Insurance Market 2022

Coalition 175m Index Venturessawersventurebeat: A coalition of providers, brokers, and industry partners has raised $175 million to build a new market in cyber insurance.

The Coalition will be led by John Hancock Insurance Co. and is targeting small businesses with limits of $3 million or less in assets that usually don’t have the resources to get cyber insurance.

Cyber risk is currently estimated at $15 billion worldwide yet only 30% of small businesses have coverage.

A cyber attack could be a breach of a single website or service that results in millions of dollars in losses. The type and scope of the threat varies but it can be both simple and sophisticated.

“A cyber attack is an IT emergency, not a business as usual event,” said Brad Smith, Chairman of the Board and CEO of John Hancock. “We believe small businesses need an insurance policy that is tailored to what’s at risk and provides coverage to protect against these very expensive events. It’s time that small businesses have more affordable cyber coverage.”

John Hancock has been offering cyber insurance since 2014. The new Coalition will be led by Robert Hartwig, Executive Vice President of Cyber Insurance at John Hancock, who will serve as Chairman of the Board.

The Foundation for Cyber Security and the National Association of Independent Insurers are also part of the coalition. Their members include BRIA, Cohn & Wolfe, Insitec t/a Hartford Fire Insurance Co., LexiTrust International, MetLife Inc. (NYSE:MET), Navigant Consulting, Peak Cyber Management, Practical Law Company, and Risk Assistance Network and Exchange (RANE).

Hartwig said the Coalition will hold monthly conference calls and workshops to address topics of interest in the marketplace. The coalition will also sponsor webinars with providers and industry groups, share educational information from their members, explore opportunities for Regulatory Arbitrage with state insurance regulators, coordinate with other trade associations that serve small businesses, and create a centralized website for cyber insurance.

“The ultimate goal of the Coalition is to be the leading, most effective group of experts working to develop a better understanding and acknowledgment for cyber risk in small business,” Hartwig said.

Coalition members will also explore how the $175 million fund can get new entrants into the market – such as brokers, agents and new technology providers – that have traditionally been excluded.

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