1. Understanding Cyber Insurance NASCUS/CUNA Cybersecurity Symposium
Jay Isaacson - VP, Business Protection
August 25, 2015

2. Cyber Insurance Introduction
State Sponsored
Critical Infrastructure
Virus/Malware
Hacktivism
Compromised Plastic Cards
Social Engineering
Denial of Service

3. Cyber Security Risk Exposures
Core processing system is compromised
Rogue software programmer building a backdoor to access confidential information
Insider malfeasance
Employee and/or third-party vendor errors/accidental disclosure
Virus/Malware attacks on a credit union system
Hacking

4. What Is Covered*? Theft or Loss of Funds
Coverage is typically triggered in the event an insured has a security breach
Expenses/ Recovery
Lawsuit Protection
Outside Consultants
Defense Expenses
Forensics
Settlements
Breach Notification
Judgments
Credit Monitoring
Regulatory Penalties/Investigations
Lost Revenue (system being down)
Public Relations (rebuilding reputation)
Extortion Expenses
What Is Not Covered?
Theft or Loss of Funds
Lost Revenue From Damaged Reputation
Operational/IT Infrastructure Costs
*Individual coverage may vary- refer to your own policy terms and conditions for specifics

5. Common Credit Union Claims
Employee/Vendor Errors
Lost Laptops and Smartphones
Virus/Malware
Unintended Disclosure
Lost Portable Media

6. Why Consider a Cyber Insurance Solution?
Leverage risk management services of providers
Ability to utilize tools and resources to bolster incident response capabilities
Benefit from experience and expertise of insurers in responding to data breaches
Mitigate costs of reacting and responding to a breach event
Cyber insurance may be a contractual requirement

7. Who Is Buying This Type Of Coverage Today?
Businesses across all sectors of the economy are adopting this coverage to help manage cyber risk
Organizations deemed to be critical infrastructure have adopted coverage at a higher rate
Approximately 35-40% of credit unions purchase cyber insurance today
Credit unions of all size ranges have elected to purchase
Typically as asset size increases, adoption of the insurance coverage also increases

8. This presentation was created by the CUNA Mutual Group based on our experience in the credit union and insurance market. It is intended to be used only as a guide, not as legal advice. Any examples provided have been simplified to give you an overview of the importance of selecting appropriate coverage limits, insuring-to-value and implementing loss prevention techniques. No coverage is provided by this presentation/ publication, nor does it replace any provisions of any insurance policy or bond.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Insurance products offered to financial institutions and their affiliates are underwritten by CUMIS Insurance Society, Inc. or CUMIS Specialty Insurance Company, members of the CUNA Mutual Group. Some coverages may not be available in all states. If a coverage is not available from one of our member companies, CUNA Mutual Insurance Agency, Inc., our insurance producer affiliate, may assist us in placing coverage with other insurance carriers in order to serve our customers’ needs. For example, the Workers’ Compensation Policy is underwritten by non-affiliated admitted carriers. CUMIS Specialty Insurance Company, our excess and surplus lines carrier, underwrites coverages that are not available in the admitted market. Data breach services are offered by Kroll, a member of the Altegrity family of businesses. Cyber liability may be underwritten by Beazley Insurance Group.
This summary is not a contract and no coverage is provided by this publication, nor does it replace any provisions of any insurance policy or bond. Please read the actual policy for specific coverage, terms, conditions, and exclusions.
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