Intangic MGA launches with Axa XL-backed cyber parametric policy

The policy, CyFi, covers losses up to $15m (£12.5m) from material cyber breaches.

The London-based managing general agent detailed the insurance has two parametric triggers: the level of malicious activity targeting a company, and a subsequent loss in value. When both have been met the claim is paid, with the MGA putting the timeframe at “days, not months”.

Strengthen

According to the MGA, the triggers ensure all parties have a transparent dashboard for the real-time monitoring of risk activity, which it claimed was a first for an underwriter in the cyber insurance market.

The new firm stated its cover strengthens rather than replaces existing cyber indemnity policies, stressing there is no claims adjustment.

The business said it had found that – having analysed thousands of corporations over several years – on average, companies struggling to manage the financial impact of cyber attacks have a 250% higher probability of suffering material losses compared with peers who had better cyber attack management.

Brokers

Both cyber and parametric insurance have been areas of increasing interest for brokers.

As previously reported by Insurance Age in July, experts have warned that clients will look elsewhere if brokers ignore parametric insurance.

In cyber, the potential seriousness of attacks and their increasing frequency were flagged as big concerns to both brokers and their clients just last month.

Coalition was one of the most recent entrants to the market, launching in the UK in September, offering cyber cover in partnership with Allianz. The US-headquartered provider expanded its product line for UK brokers earlier this month with an excess cyber protection product.

Team

Intangic MGA is headed up by a team including CEO and founder Ryan Dodd, who leads on data science, technology and product vision, as well as Mark Heath, head of insurance and chief underwriting officer.

Heath has 35 years of insurance experience, including underwriting and broking roles at AIG and Aon.

Debbie Durkan has joined as lead growth and client distribution. She has 25 years of broking experience and was most recently chief client officer at Marsh Commercial.

Dana Deasy has been appointed as chairman while Chris Key will serve as a director of Intangic.

Demystify

Dodd said: “We brought multiple areas of risk expertise together to think about cyber differently and, through data science, we have converted what is considered an invisible risk into something more measurable, and ultimately visible, to large corporations.

“We want to demystify cyber to anyone outside of our customers’ cyber security team. We can, as a result, help risk managers improve the overall effectiveness of their cyber insurance programmes, including timely payouts.”

Different way

Luis Prato, chief underwriting officer, UK & Lloyd’s at Axa XL, commented: “This is a simple and innovative solution to a complex problem.

“Intangic’s policy and the mechanisms behind it create a different way to approach risk and unlock capacity for cyber for large public corporations, helping them to strengthen their cyber risk programme.”

Intangic is backed by Paladin Capital Group, with European general manager and principal Ken Pentimonti on the MGA’s board.

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