Page 52: of Maritime Reporter Magazine (June 2020)

Cyber Security

Securing Vessels & Ship Systems

WTW Launches New Cyber Insurance for Ship Owners

By Ben Abraham, Head of Marine, Willis Towers Watson include loss of gross proft and increased working costs, including payments on account to help with cash fow (a frst in cyber).

This level of coverage is not typi- cally offered in marine policies; recent disclosures by listed companies in the maritime sector have shown that these costs can reach hundreds of millions of dollars.

© sasun Bughdaryan/AdobeStock

The cover offered by CyNav is built

Willis Towers Watson, a global advi- need to mitigate their cyber risk. around the changes in the maritime sory, broking and solutions company, With the industry’s course set towards regulatory framework, including the unveiled a new type of cyber insurance ‘smart’ shipping, all links in the global

International Maritime Organization’s product for shipowners that redesigns maritime supply chain – ashore and at (IMO) forthcoming cyber-security standard cyber policies to better navi- sea – are becoming more connected. guidelines. From January 1 2021, the gate the risks for ship operators in the Greater exposure to cyber risk is an

IMO will make it mandatory for compa- digital era. inevitable side effect.

nies to document compliance with a raft

The solution, CyNav, addresses cyber Previous events have proven that an of new measures within their vessel’s threats in the broadest sense, including attack does not have to be targeted at a safety-management systems. losses that occur from cyber-related specifc company to disrupt its business.

Among those measures are risk assess- business interruptions, even when the Organizations can be the unintended ments, standard cyber-security operating cyber events originate with third party victims of cyber events, so risk-transfer procedures and the education and train-

IT service providers. solutions need to recognize that a ing of crew and land-¬based employees.

CyNav’s primary focus is to support company simply can end up as collateral A failure to comply would expose a the continuity of maritime businesses damage.

company to potential vessel detainment.

and help shipowners to resume normal The CyNav solution, which allows

CyNav offers shipowners the option to operations as soon as possible following shipowners to reinforce protection protect their business against the cost of a cyber incident. against the specifc threats unique to certain non-compliance with new regu-

The product reaches the industry just their businesses, is designed by cy- lations – both those that govern cyber as the disruptive potential of malware ber and maritime experts. As such, security and data protection – includ- cyber-attacks on the shipping industry it addresses the coverage gaps found ing revenue that may be lost if a ship is recaptures the headlines. between standard hull and machinery detained.

Barely a week goes by without new (H&M) and cyber policies, while ensur-

Extending CyNav’s cover to cyber- cyber events affecting the maritime sec- ing that owners only pay for the protec- security legislation provides protection tor. Many are minor and unreported, but tion they need.

beyond current typical insurance market the major cases have caused consequen- It is an important advance in corporate standards.

tial commercial losses in the hundreds risk-transfer options for an industry

Ultimately, CyNav supports busi- of millions of dollars. CyNav offers a where most H&M policies have cyber ness continuity and helps companies to genuinely pioneering marine-specifc exclusions and many cyber policies do resume normal operations quickly after cyber solution. not cover fnancial losses when normal a cyber event. It is intelligent cyber cov-

In an environment of increasing inge- business operations are interrupted as a erage created specifcally for the modern nuity from cyber criminals and growing consequence of property damage caused shipping industry and it includes cover levels of cyber security governance in by a cyber-attack.

from malicious, non-malicious and the maritime industry, CyNav an- Under CyNav, compensation for technical failures.

ticipates the protection that shipowners cyber-related business interruptions can 52 Maritime Reporter & Engineering News • June 2020