CFC extends AI and cyber cover to digital health, fintech, and technology sectors amid rising data threats
CFC has extended its Cyber Proactive Response cover to digital health, fintech, and tech sectors, adding AI event coverage and emergency continuity costs. This protects sensitive data and helps maintain operations after cyber incidents.
CFC Extends AI Cover and Emergency Continuity Costs to Digital Health, Fintech, and Tech Sectors
Specialist insurer CFC has expanded its Cyber Proactive Response (CPR) cover to include existing policies in the digital health, fintech, and technology sectors. This move addresses the growing risk associated with the handling of sensitive personal data in these industries.
The updated CPR coverage is effective immediately for these sectors and provides several key protections:
- Affirmative coverage for AI-related events
- Fee loss coverage for lost or missed bids during contract competitions
- Emergency continuity costs to help businesses maintain operations following a cyber incident
- Cyber attack prevention services embedded directly within the policy wording
Tim Boyce, CFC's Deputy Chief Underwriting Officer, emphasized the significance of this extension. He noted that these sectors are prime targets for cybercriminals due to the volume of critical personal data they manage. Enhancing coverage with CPR replaces previous cyber wordings to offer more comprehensive protection tailored to these industries.
Boyce also highlighted the potential consequences of cyber attacks, including privacy breaches, immediate financial losses, reputational damage, and in digital health, risks to human life.
Recent Cyber Incident Highlights Sector Vulnerability
Earlier this month, UK retailer Marks & Spencer disclosed a ransomware attack that compromised some personal customer data. The company expects insurance recoveries totaling £300 million, according to its recent financial filing. M&S holds a cyber insurance policy with coverage up to £100 million, arranged through broker WTW.
This incident underscores the importance of comprehensive cyber insurance solutions that cover both direct and indirect losses, including operational continuity and emerging risks related to AI.
Insurance professionals working with tech-based sectors should consider how enhanced CPR coverage can better protect clients against evolving cyber threats.
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