Insurer Offers Standalone Cyber App to Thwart Network Shutdowns, Reduce Delayed Reporting

A new mobile app released by Chubb promises to reduce delays in reporting cyber incidents, offering a work around in cases where hackers shut down whole networks. The Cyber Alert mobile application allows 24/7 reporting for commercial cyber customers in the U.S and Canada in the event of a cyber incident.

Anthony Dolce, vice president and cyber claims lead at Chubb, explained that from a claims perspective, a timely response is critical to limit damages.

“The way we look at it, the effectiveness of a cyber incident response is going to be determined by two factors,” said Dolce. “One of them is going to be the speed of notification and the second is the quality of the response.”

A cyber event is a very stressful event, explained Dolce, requiring “a lot of decisions that need to be made in a coordinated manner in a short period of time. If that doesn’t happen, the situation has the potential to spin out of control and turn into a disaster.”

To expedite the reporting process a business profile can be built in advance, to avoid a delay while searching for an insurance policy or reporting information following an incident.

Upon reporting a cyber incident via the app, a live cyber response specialist is available to assist an insured. An incident response coach investigates the impact of the event, manages any legal or regulatory concerns and engages the use of additional incident response services as needed. The app can be scaled to the policyholder company’s size and can be included as part of a larger corporate incident response plan.

“The first few hours and days following a cyber incident are the most critical,” said Dolce. “Being ready to respond and immediately engaging your incident response team can make all the difference in mitigating losses associated with a cyber incident.”

The cyber incident response team is comprised of several lawyers out of two national law firms that are well versed in varying state regulations, Dolce said. An important point, given that multiple state regulations and laws may apply.

“You never know for certain what state laws are going to apply, what regulators you’re going to have to deal with, including a state’s attorney general,” he said.

An estimated 48 states have separate regulations governing incident response requirements, he added, noting that “there’s a myriad of state laws and regulations that could apply.”

The interactions between the insured and the cyber response coach are subject to attorney client privilege and remain confidential.

“They help the insured navigate the gauntlet of reporting requirements,” said Dolce.

Additional files, including screen shots and photos taken with a mobile phone camera, can be attached to the report. According to Dolce, this is particularly helpful in case a computer is locked up and the policyholder needs to convey to others what he or she is experiencing.

For example, in a ransomware situation, one can attach screen shots when reporting the incident via the mobile app. Since the app is separate from the network, the breach or malware can remain contained while the report is made.

Early reporting aids in investigating the loss, he said.

“The quicker everyone’s brought in, the quicker you can identify what the problem is, where did the threat come from, how to contain it and how to mitigate the damage,” said Dolce.

This can aid in providing the insured analysis on the coverages that apply.

“The quicker you can remediate the situation, the less likely a company is going to incur a business interruption loss,” he added.

There’s also the goodwill aspect, Dolce said.

“You want to make sure that the company is still held in high regard by the community and that you restore the reputation and the confidence of the company’s customers, their employees, their investors,” said Dolce.

Version 1.0 of the app supports iOS and Android and is available for commercial cyber customers. Chubb’s Cyber Alert app: https://www2.chubb.com/us-en/_assets/doc/2017-10.04-17010204-cyber-alert-product-sheet.pdf

Future app revisions to enhance functionality and effectiveness are expected next year.