NCBFAA Annual Conference 2015 Orlando Converging Logistics: Realities vs. Possibilities Cyber Insurance Bernie Cissek, Chairman

Eagle Underwriting Group Inc. 2 Brief History: First “internet liability” policy written 1997 due to fears of Y2K Dot com bubble accelerates growth ( ) but take-up is limited to network reliant business First mandatory breach notification laws passed in California in 2003 (CA1386) Uptake in this insurance slow since 2003 but now gaining traction we are at the precipice it has hit the news on a regular basis

Eagle Underwriting Group Inc. Eagle Underwriting I have been involved in underwriting and insuring risks for the Customs Brokering and Logistics Industry since the 80’s and developed new insurance products as the industry grew and progressed. We now have available a stand alone Cyber Crime and Cyber Privacy Insurance Policy, which if needed can also be part of the Legal liability and E & O Package. 3

Eagle Underwriting Group Inc. 4 Types of Coverages The Coverage is Both a Service and Insurance Policy will offer both First and Third Party Coverage First Party Coverage includes: Business InterruptionCyber Extortion Cost of restoring dataForensic Investing Costs Notification ExpensesCredit monitoring Expenses Crisis Management & associated PR Costs

Eagle Underwriting Group Inc. 5 Types of Coverages (Continued) Third Party Coverage includes Defense expenses and Indemnity payments as a result of a network breach Includes regulatory investigation costs and associated fines/ penalties (where insurable)

Eagle Underwriting Group Inc. Protect and Insure Your Critical Data This “critical data” can range from client corporate information e.g an from the CEO regarding a possible merger, or a customer’s information e.g name, address, banking info, social security number, importer information, address, export documents, bond and clearance information etc. Basically any information which is in your care, custody or control should be protected. This critical/ sensitive information doesn’t just mean information you store on a computer network. What companies need to ask is, what would cause the most damage if it was lost and how is this being monitored and protected? Do you know your weak spots? Are staff trained? Is there a clear understanding of what to do if your company has a breach – has this been tested? As with all insurances, cyber insurance is a last resort. It is there to provide protection in the event that you have a breach, even if you have done your upmost to protect your company’s critical data. You will have cyber-experts to call. We will “triage” the situation for you. 6

Eagle Underwriting Group Inc. Emerging Trends Bring Your own device, BYOD your employees have access to your system with “their” device. The next greatest security breaches we could have is through the iPhone/iPad the system too wide open. (James Comey) Reliance on the “Cloud” and other third party vendors. Do you know where your data resides, and under which country’s laws, what does the small print say about the vendors responsibility to you. Next generation products will cross bounderies that will be even less controllable It’s 2:00 PM do you know where your data is or who now controls it. 7

Eagle Underwriting Group Inc. Conclusion We are in an age of information technology that has matured to run virtually every company or industry on earth including our personal lives. The bad guys and girls including some state sponsored hackers are out to get your data and sell it or hold it for ransom or close down your systems and your company. As in the past when we in the insurance industry made Legal liability and E & O Insurance available to protect the Customs Brokers and Freight Forwarding Industry we now have a “bespoke” stand alone Cyber- Protection Package We have applications available and further information you can get from Jason Wieselman, of International Bond & Marine or the web site. Thank you for your attention 8

Eagle Underwriting Group Inc. You have been HACKED 9

Eagle Underwriting Group Inc. The Policy your protection 10