Rail-specific insurance to mitigate cybersecurity risk
GERMANY: A novel insurance policy intended to mitigate the cybersecurity risks facing railway operators has been launched in Germany.
Deutsche Verkehrs Assekuranz Vermittlungs is a bespoke insurance broker owned by national railway Deutsche Bahn (65%) and insurers DEVK and Marsh. Through DVA, policyholders will be eligible for discounts from specialist insurance provider Hiscox based on their ‘rail cyber index’ rating. Hiscox will in turn work with Cylus, a rail cybersecurity specialist, to develop and assign these ratings.
The policy is designed to cover financial losses caused by railway-related cyber risks, such as network disruption caused by hackers accessing operational functions. It also covers conventional cyber risks such as loss of customer data, IT system breakdowns or cyber extortion. As well as offering coverage, the product also includes access to specialist IT consultants when a claim is lodged.
‘This policy has been developed in conjunction with railway companies and is tailor-made to provide cover for the unique cyber risks in rail’, says Alexander Rassmann, Head of Liability & Financial Lines insurance at DVA. ‘By combining Hiscox’s experience in insuring cyber-risks and Cylus’s technology and domain expertise, DVA is able to offer its clients the protection they need.’
‘Cylus is thrilled to support DVA and Hiscox in accurately assessing cyber risks for rail companies, rewarding companies which take proactive steps to secure their operations from cyber threats with lower premiums’, adds Rotem Abeles, Head of Business Development.