Winnipeg Free Press - PRINT EDITION

Firms turn to cyber-insurance for data breaches

  • Print

TORONTO -- When Brian Rosenbaum started pitching cyber-insurance to companies in 2006, he was met with blank stares from risk managers and resistance from information technology experts, who insisted their networks were impenetrable.

All of that has changed in the past year-and-a-half said Rosenbaum, who heads the cyber-insurance division of Aon Corp.'s Canadian brokerage arm.

"We've reached a threshold where people are now coming to us instead of us going to them," said the vice-president.

Insurance brokers say the frequency of high-profile data breaches is causing a surge in demand for insurance products that protect against losses stemming from cyber-attacks.

On Thursday, U.S. prosecutors charged five people with stealing 160 million credit and debit card numbers from companies including 7-Eleven Inc., JC Penney and French retailer Carrefour, calling it the largest data breach in the country's history.

Other victims of data breaches in the past few years include Sony's PlayStation Network, financial institution Citigroup and a number of Canadian government departments.

A breach can be costly. Companies face notifying clients that their personal information has been compromised, offering credit-protection services, hiring a crisis-management firm and defending against lawsuits.

Aon has placed more cyber-insurance policies in just the last 18 months than it did in the previous five years, said Rosenbaum.

"People are beginning to understand that this is a risk that can affect any business."

Financial institutions, online retailers, hotels and restaurants, health-care companies and educational institutions are driving the demand because of the volume of personal and financial data they collect, said Rosenbaum.

 

-- The Canadian Press

Republished from the Winnipeg Free Press print edition July 29, 2013 A7

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Jets This Week: Predicting the line-ups

View more like this

Photo Store Gallery

  • A monarch butterfly looks for nectar in Mexican sunflowers at Winnipeg's Assiniboine Park Monday afternoon-Monarch butterflys start their annual migration usually in late August with the first sign of frost- Standup photo– August 22, 2011   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • July 1, 2012 - 120701  -   Canada Day fireworks at The Forks from the Norwood Bridge Sunday, July 1, 2012.    John Woods / Winnipeg Free Press

View More Gallery Photos

Poll

Do you think e-cigarettes should be banned by the school division?

View Results

View Related Story

Ads by Google