Press release 18 October 2016
Property-casualty insurer ERGO Versicherung now offers two cyber risk cover options for small and medium-sized companies: one is comprehensive coverage and the other is compact cyber cover for companies with a turnover of up to 1 million euros. With the introduction of the new products, ERGO is reacting to the increasing number of cyber attacks on German companies.
Almost half of all German companies have been a victim of a cyber-attack over the past year*, which targets the availability, integrity and confidentiality of data or IT systems. Experts estimate that three quarters of all cases affect either small or medium-sized businesses. However, there are hardly any companies insured against such risks. “Cyber attacks can be seen as 21st-century arson. Every business has fire insurance, but cover for cyber risks has been largely neglected to date”, says Christian Diedrich, member of the ERGO Board of Management, responsible for Property and Casualty Insurance. Medium-sized companies in particular lack awareness of the risks. According to Diedrich, “as soon as the attacker has access to the network, nothing is safe anymore.”
ERGO has developed appropriate cover so that a company’s existence is assured even after a cyber attack. “ERGO Cyber-Versicherung” and “ERGO Cyber-Versicherung Kompakt” are the names of the two products.
“ERGO Cyber-Versicherung” helps small and medium-sized businesses, and includes:
- Third-party damage: compensation claims for personal injury as well as property and financial damage following breaches involving data protection, data confidentiality and IT security.
- Own damage: costs for recovering data and programmes following a cyber attack, compensation for loss of earnings and additional costs as well as money and merchandise losses after computer fraud.
- Services in the event of damage or loss: IT services and forensics, takeover of messaging costs, crisis management organisation and reputation-saving measures, costs for protection against cyber threats/blackmail and organising legal protection cover.
“Kompakt” cover for companies with a turnover of up to 1 million euros is aimed at self-employed persons and smaller companies in the commercial and trade sectors. The focus is on the aforementioned first-party losses and selected services in the event of damage or loss. “We have developed two product types. This enables our customers to adapt cover to suit their actual needs”, explains Ralf Knispel, Head of the Cyber Insurance Department. “It was also important to us to offer services that our customers can access around the clock in the event of a claim”, say Knispel. Considering the currently low market penetration, the cyber market offers enormous potential for growth.
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About the ERGO Group AG
ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. ERGO offers a comprehensive spectrum of insurance, provision and services. In its home market of Germany, ERGO ranks among the leading providers across all segments. About 43,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2015, ERGO recorded a premium income of 17.9 billion euros and rendered benefits to customers of 16.8 billion euros. ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers.
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This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.