First standard for cyber data breach released

ACORD, the global standards-setting body for the insurance industry, has released the industry’s ‘first standard’ for cyber data breach.

The ACORD Cyber Data Breach Standard has been developed in collaboration with broker Aon and specialist insurer Beazley.

Nearly 60 percent of insurers identify the lack of uniform data standards and forms as a key roadblock to the growth of cyber-insurance policies, according to ACORD. As organisations continue to be impacted by cyber-related losses, demand for coverage is steadily growing. This increasing demand is driving the need for streamlined, standardised cyber risk data exchange.

“This expanded standard supports the evolution of cyber coverage and data breach events,” said ACORD CEO Bill Pieroni.

The ACORD Cyber Data Breach Standard increases operational efficiency and effectiveness for cyber risk stakeholders, establishes a baseline for compliance and audit-related activities, and enables solution providers to leverage standards for increased support, the organisation claimed.

“This question set will help organisations approach cyber risk in a united manner,” said Christian Hoffman, president, US cyber solutions at Aon. “Connectivity and collaboration across organisations including, but not limited to, information security, legal and risk management is critical. A set of uniform standards is an ideal place to start this transition.”

ACORD identified a need to expand and enhance the existing cyber liability standard to better support the rapidly evolving marketplace. Together with Aon and Beazley, ACORD focused on data breach, examining common challenges with manual, disparate practices for sharing information during risk assessment and policy workflow. ACORD synthesized these components to create and refine the draft standard.

The Cyber Data Breach Standard is being made available immediately to ACORD members for review and feedback. It will then be incorporated into the next scheduled release of the ACORD Property & Casualty Standards and will continue to evolve as the market expands and adapts in alignment with ACORD’s member requirements.

“Data breach is just one example of the many cyber exposures which require fast and accurate information exchange between parties,” said Pieroni. “ACORD will continue to welcome contributions like this from industry leaders, which will expand the portfolio of our cyber standards for the benefit of the entire insurance industry.”

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