Howden launches blended insurance product amid rising cyber attacks

Howden has launched a blended insurance product that brings together professional indemnity, crime and cyber liability into one policy and under one limit.

In a statement released today (9 August 2023), the specialist broker said the product was designed to improve claims responsiveness and simplify communication with insurers.

In turn, Howden added that the product, which was developed with a panel of specialist insurers, will offer clients potential cost savings and improved efficiencies.

Sarah Hughes, chief executive of Howden Specialty, said: “The launch of this blended product reflects Howden’s broader strategy to harness its collective specialty expertise across the group for the benefit of clients, developing advanced products that provide joined up protection.

“[This ensures] that our solutions remain relevant to clients now and in the future.”

Cyber attacks

Howden said it made the move in response to a rise of sophisticated cyber claims, such as ransomware and phishing.

According to the broker’s Coming of Age report, which was published earlier this year (10 July 2023), ransomware attacks surged by nearly 50% in the first half of this year compared to the same period in 2022.

Howden said that a cyber event can trigger multiple insurance products, including professional indemnity, crime and cyber liability.

However, it warned that this “can cause delays in accessing the support and funds needed at the time, particularly when dealing with multiple insurers”.

”By combining the coverages into a fully blended product with a single set of policies and one limit, the product significantly improves claims responsiveness and simplifies communication with the insurer,” the broker added.

Ed Brennan, managing director for financial institutions and directors and officers (D&O) at Howden, said: “This product was developed to provide seamless and efficient solutions to address financial services clients’ increasingly complex cyber requirements in the midst of rising cyber events.

”This product will help clients navigate this difficult environment and I look forward to working with them to maximise efficiencies and improve their insurance protection.”