Munich Re America has launched a cyber reinsurance solution, which will enable regional property/casualty insurers to protect SME policyholders.
The cyber reinsurance solution can be used by insurance carriers and reinsurance brokers in all US states.
The tool offers up to $15m in reinsurance capacity. Furthermore, it will offer access to a risk management portal and a post-breach services panel. These are aimed at primary insurers who do not have adequate cyber protection resources.
Munich Re also said that insurance carriers participating in the solution will retain a portion of the risk.
The solution will include proprietary cyber product as well as ISO-based cyber policy.
Munich Re vice president and head of cyber for the US reinsurance division Annamaria Landaverde said: “Cyber events are a growing threat to businesses of every size. A cyber event can have a crippling effect on small to medium-size businesses, which often don’t have the resources or insurance protection needed to recover following such an occurrence.
“Munich Re offers regional primary carriers a flexible, turnkey cyber solution to help protect their small to medium-size commercial customers.”
In this regard, Munich Re cited a May 2016 IBISWorld report, which found 72% of cyberattacks in the US occurring in SMEs.