Munich Re has partnered with Allianz Global Corporate & Specialty (AGCS) to write a new Cloud Protection + cyber policy exclusively for Google Cloud customers.
The policy will initially be offered to Google Cloud customers in the United States and will be available to organisations with revenues of between $500m and $ 5bn.
At a later stage, the scope will be extended to include organisations in other revenue segments and countries.
Munich Re said the coverage of cyber risks is a strategic field of business in which it aims to achieve further sustainable growth:
“As cyber risks and loss scenarios change quickly and continuously, Munich Re maintains its position among the top providers by steadily developing its own approach and risk modelling, and also by collaborating with clients and partners. Munich Re has now agreed on a cooperation with Google Cloud and AGCS focusing on providing cloud specific cover for organisations.”
“By combining the expertise of three industry leaders we address the specific risk management needs of organisations that are moving their business to the cloud. Embedded in an efficient underwriting process, our solution Cloud Protection + provides a holistic response to cyber risk,” said Stefan Golling, member of the Board of Management at Munich Re.
“Above and beyond the immediate benefit for Google Cloud customers, the cooperation will contribute to the further enhancement of Munich Re’s cyber risk modelling,” he added.
Allianz’s involvement follows a warning at the start of the year that the COVID-19 pandemic may have opened a “Pandora’s Box” of cyber business interruption risks, according to Georgi Pachov, head of Portfolio Steering and Pricing at AGCS.
Pachov’s suggestion was made as part of the latest Allianz Risk Barometer, which revealed (unsurprisingly given the unprecedented disruption caused by the coronavirus outbreak) that business interruption and pandemic outbreak top this year’s survey.
“The pandemic has demonstrated the need to ‘expect the unexpected’ and watch out for the pitfalls of digitalisation,” Pachov said.
“We may be about to open a box of ‘Black Swan’ events, with unexpected consequences from the pandemic, such as future cloud outages.”
“Everybody is rushing to embrace technology and embark on digital transformation, which could put technology companies under immense pressure to meet growing demand for cloud and other IT services,” added Philip Beblo, global practice group leader Utilities & Services, IT Communication at AGCS.
“Tech companies will be working close to capacity and there will come a point when technology and servicing will become stretched or reach their limitations. If digitalization is not done properly [with due consideration for the risk/building resilience] then a future ‘Black Swan’ scenario involving the failure of a major cloud provider could become a reality,” Beblo said.