The Hartford Financial Services Group, Inc. (HIG - Free Report) has recently launched an admitted cyber liability product named, CyberChoice First Response to address the cyberattacks suffered by the businesses. This initiative comes with an objective to lower the damages caused to the company’s profitability and reputations due to a spate of cyberattacks.
The New Offering
CyberChoice First Response helps businesses combat cyberattack challenges like data privacy and network security, media, ransomware and business interruption with complete opportunity of customization. The product would also enable the company to track down and respond to cyber threats.
Provision of coverage for pre-claim expenses, recognition of internal expenses incurred due to a breach, 24/7 cyber incident hotline assistance, protection against system failure and administrative error are some of the major features of the product. CyberChoice First Response would also offer coverage, related to a regulatory inquiry plus regulatory fines and defense as well as expenses incurred on a regulatory proceeding.
The new product provides business owners with vital access to a guidance panel of pre-approved service providers, who could assist to secure the invaded networks with their expert advice and know-how. For customers, Hartford Financial offers a digital cyber risk management portal called The Hartford Cyber Center, which equips customers with tools, training materials and suggestions on best practices to mitigate the cyber intrusion risks.
Rationale Behind the Launch
The failure to protect information of the policyholders costs insurers millions in terms of fines and other costs. A report by Accenture plc (ACN - Free Report) states that insurance companies experience 113 cyberattacks on an average every year with one out of three successfully inflicting serious data violation. This not only hurts a company’s underwriting results but also causes loss.
Management at Hartford Financial believes that CyberChoice First Response is a comprehensive insurance solution to provide insurers and their clients with complete coverage on the rapidly changing landscape of cyber threats.
The responsibility of the new product does not end once the claim is resolved but it also offers post-incident coverage to enable a business improve its overall security position prepared beforehand against possible cyberattacks.
Initiatives by Other Players
With the average cost of a data breach exceeding $3 million, insurers are proactively adopting new technologies to protect their clients and customers.
Earlier this April, Willis Towers Watson Public Limited Company (WLTW - Free Report) , a leading insurance broker, launched the latest version of its innovative Cyber Risk Profile Diagnostic tool, which allows organizations to identify and analyze risk prone areas of cyber exposure and vulnerability by measuring the respective current cyber maturity.
Last December, American International Group, Inc. (AIG - Free Report) announced a new cyber benchmarking model, which quantifies and scores client cyber risk.
Share Price Performance
Hartford Financial’s relentless efforts to ensure customer satisfaction have therefore helped it gain shareholders’ appreciation. In a year’s time, the stock has returned 6.2%, outperforming the industry’s rally of 0.6%
Hartford Financial carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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