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November 24, 2020
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The pandemic is increasing the interest of companies in cyber risk insurance

200,000 euro, the value of IT&C insurance premiums concluded by Leader Team Broker in the first year since the official launch of the policy in Romania

A number of 40 Romanian companies operating in industries such as IT&C, retail, production or transport have insured themselves in the last 12 months against occupational and cyber risks, by purchasing the first insurance policy that also covers GDPR fines.

Leader Team Broker, a key player on the Romanian insurance market, announced that the value of the insurance premiums for professional liability and cyber risks, concluded in the first year since the introduction of the products in its portfolio, was of 200,000 euro, four times higher than estimates from October 2019. The insurance policy, which covers special liability and cyber risks, brought to the British insurer, in 2019, the title of “Insurance Specialist of the Year” at the “British Insurance Awards” Gala dedicated to the UK insurance industry and to the Romanian company, Leader Team Broker, the “E-risk” distinction offered by a financial publication.

“In October 2019, in partnership with the British insurer CFC Underwriting, a pioneer in special risks, we introduced in the portfolio a complex and accessible product, in order to support IT&C companies in the face of risks that may result from the professional activities carried out and from cyberattacks. We estimated then, for the first year, a maximum volume of 50,000 euro but, in less than 12 months, we managed to attract important players in the field of technology, including FintechOS, Softelligence, Zitec, Tremend but also smaller companies interested in the protection offered by the policy. The largest policy concluded amounted to 40,000 euro and covers the risk of errors, omissions and cyberattacks. As an example, a policy on the IT&C segment starts from 550 euro/year and has a coverage of 500,000 euro”, said Răzvan Rusu, the founder of Leader Team Broker.

The company representative believes that the companies’ interest in the new product was directly influenced by the changes that the crisis generated by SARS-COV2 produced on the labour market locally and internationally, by the decision of many companies to introduce telework and by the fact that many local IT&C companies have signed contracts with international clients by means of which such policies were requested.

The IT&C insurance policy, which also covers GDPR fines, initially dedicated to technology companies, covers the risks of a cyberattack, including the GDPR fines arising from the exposure of customer data outside the company, professional liability, and all costs of errors and omissions regarding the company’s business, the breach of the confidentiality of the information it manages, the damages caused by the unfair action of employees, reputational risks, including theft of money from the company through various methods (Phishing, etc.).

The policy also covers other cyber risks such as:

  • Theft from bank accounts or cards
  • Interruption of commercial activity as a result of a cyberattack
  • Costs of data recovery from cyberattacks
  • Cyber ​​blackmail and the rewards demanded by criminals
  • Defamation
  • Intellectual property theft
  • Unintentional transmission of computer viruses
  • Unintentional breach of third-party information.

“More and more local companies, including small businesses, began to become aware of the risks they face as digitalization accelerates and of the benefits offered as a protection measure by the cyber risk policy. You don’t have to be a world-famous giant to be the victim of a cyberattack, you can also be a confectionery that, following a phishing email, can lose up to several thousand euro. All official statistics show that, in recent months, cyberattacks have increased alarmingly and this trend will be maintained”, explained Alexandra Elena Durbacă, Executive Manager of Leader Team Broker.

The company’s Executive Manager expects the demand for IT&C insurance policies to continue to grow both as an effect of the development of the industry and of the need of suppliers and customers to be protected against any cyber risks or professional liability risks in the field of technology. Not only IT&C companies but also companies operating in other fields of activity (production, retail, medical services, transport, automotive, tourism, consulting/services, energy, aviation, etc.) can conclude a policy against cyberattacks.

 

About Leader Team Insurance Broker

 

Set up in 2006 by entrepreneur Răzvan Rusu, Leader Team Broker is an insurance brokerage company with over 14 years of experience in risk management and insurance. The company currently has 40 employees and partners, which offer brokerage services both in Bucharest and nationally through the existing offices in Sibiu, Brasov, Deva, Oradea and Bacau. Leader Team is known as one of the most innovative insurance brokerage companies in Romania, with unique cyber security products, products for the IT industry, shipbuilding, aviation, energy, health and special projects such as UEFA Champions League Romania (2012), White Sensation Romania (2012), The Human Body (2013). In 2017, the company received the award “The most creative insurance broker in Romania”, offered by Media XPrimm and in 2019 it received the award for “Innovation and Digitization”, being the only brokerage company in Romania that used RPA technology for repetitive financial operations. Leader Team is the only insurance brokerage company that has developed the iDoctor concept, an integrated programme of national and international medical services, based on a personalized insurance programme.

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