2017 Hot List Recipient
2020 Hot List Recipient
2021 CEO of the Year
Accolades
Media
Cyber: An ever-changing risk
Cyber risks are constantly evolving. When cyber insurance was first introduced in the late 1990s, it was developed to protect early dot-com companies from business interruptions caused by perils like the destruction of data, unauthorized systems access, and computer viruses.
In 2003, California introduced the first meaningful breach notification legislation in the United States, which other jurisdictions quickly copied, and the focus of cyber insurance suddenly shifted to data protection. This focus remains a priority in 2022 after the introduction of several significant data privacy laws, but ransomware attacks have become the number-one issue.
Jacob Ingerslev got into the cyber insurance industry in 2007 when he moved to London, UK from Denmark. In 2012, he moved to the US and began focusing on cyber & tech E&O coverage. In the 2010s, both the Lloyd’s (UK) and US insurance markets were considered leaders (and still are) in the nascent cyber insurance arena.
Cyber insurance is different from other types of commercial insurance because of its relative immaturity and lack of historical data, making predictions around loss frequency and severity more challenging, according to Ingerslev, senior vice president of cyber & tech at Tokio Marine HCC – Cyber & Professional Lines Group (CPLG), a member of the Tokio Marine HCC group of companies based in Houston, Texas.
Arguably, no one could have predicted how dramatically the cyber insurance market would change in 2019, when there was a sudden uptick in ransomware attacks – a variation of malware that allows hackers to lock people out of their business systems until they pay a ransom, usually in cryptocurrency and to an offshore bank account. The ransomware plague has continued to this day, with ransom demands continuing to increase significantly over the last two years.
“We’re all – insurance carriers, brokers, agents, and policyholders – working toward a common goal, which is to reduce the frequency and severity of cyberattacks that companies are faced with. A number of insurers are working diligently on solutions to help their customers reduce their cyber risk. This is really where they can stand out in this market.”
While every insurer has a bespoke approach to cyber-risk mitigation, Ingerslev says there’s consensus in the market around several essential cyber security controls. One is multi-factor authentication (MFA), a defensive measure that nearly all carriers require, as it helps prevent attacks that use stolen passwords. MFA is an authentication method that requires the user to provide two or more verification factors to gain access to a resource.
Another crucial cyber-security requirement today is the use of endpoint detection and response (EDR) tools, which Ingerslev describes as “the third or fourth generation of anti-malware or anti-virus software.” EDR is a proactive tool that can automatically detect and block malware before it breaches a network. In addition to these, carriers also want insureds to have robust back-ups, as well as operational controls such as phishing training for all employees.
“The market has learned from its loss data that these are effective cyber-security controls,” says Ingerslev. “Most attacks can be prevented with a handful of security mechanisms, as threat actors will instead move on to easier targets. The focus should be on making yourself invisible by removing the common access points. There’s also a great deal of innovation happening at the individual carrier level … with scanning and dark-web monitoring to find common attack vectors and software vulnerabilities.”
In cyber, part of the challenge is the fact that threat actors are running a business where they have monetized cybercrime in such a lucrative way that it’s hard to give up. So far, the threat actors have been very innovative and have stayed a few steps ahead of the defense lines, according to Ingerslev.
“Will cyber exposure ever disappear? That is very unlikely,” he says, pointing out that technology is evolving every day and society is becoming increasingly connected. “The [digital economy] will continue to expand, which means we’re going to see more vulnerabilities and more technologies for threat actors to exploit and monetize through cybercrime.”
Despite all of these challenges, Ingerslev sees a “bright future” for the cyber insurance marketplace, which has always reacted quickly to loss patterns and emerging risks. The dynamic nature of the risk has resulted in an increase in a score of new business models – insurtechs being one.
In 2021, the cyber insurance market’s gross written premium (GWP) was around $10 billion. “It’s becoming a meaningful line of business in the industry,” says Ingerslev. “It's still quite far behind property and casualty, but it's definitely making up ground. There are estimates saying we might reach $35 billion in GWP over the next six or seven years, and I think that's a real possibility if we continue at the current growth rate.”
Spotlight
In response to the unprecedented level of dangerous and damaging cyberattacks being successfully launched against American companies, cyber insurers have raised rates and tightened up their underwriting guidelines, and some have even started sub-limiting ransomware and applying co-insurance provisions, forcing insureds to share more of the risk or improve their controls.
“We’ve had to adjust our approach to underwriting and pricing for cyber risks,” says Ingerslev. “The need for companies to collect more data … and qualify for coverage has really tightened. Premiums have gone up significantly, but we don’t want this to be the reason companies stop buying cyber insurance. So, the question is: How do we ensure that our policyholders continue to see the value in cyber insurance despite all the market changes? We want to maintain a large, diverse, and continuously growing cyber insurance market.”
Tokio Marine HCC – Cyber & Professional Lines Group (CPLG) is the US marketing name used to describe the cyber and professional lines-related insurance operations of Tokio Marine HCC. Tokio Marine HCC is a member of the Tokio Marine Group, a premier global company founded in 1879 with a market capitalization of $38 billion as of December 30, 2021. Headquartered in Houston, Texas, Tokio Marine HCC is a leading specialty insurance group. CPLG’s underwriting, risk-management and claims-handling experience has unparalleled expertise and the confidence to propel businesses forward.
Company Profile
280+
employees nationwide
20+
specialty insurance products, three of which Tokio Marine HCC – CPLG originated in the US
7
GROUP'S OFFICES AROUND THE US
3
SPECIALTY PRODUCT LINES (INCLUDEs CYBER & TECH, PROFESSIONAL LIABILITY, AND TURNKEY REINSURANCE & PROGRAMS)
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
Years IN the industry
20+ years
CAREER HIGHLIGHT
The two highlights of my career involved international opportunities, where I transferred from Copenhagen to London in 2007 and London to Chicago in 2012.
Favorite Quote
“Be curious, not judgmental”
-Ted Lasso
Jacob Ingerslev
senior vice president – cyber & tech, Tokio Marine HCC - Cyber & Professional Lines Group
Jacob Ingerslev of Tokio Marine HCC – Cyber & Professional Lines Group reveals why cyber is a unique beast and how insurers are tackling it
Read on
“We want to maintain a large, diverse, and continuously growing cyber insurance market.”
Jacob Ingerslev,
Tokio Marine HCC - Cyber & Professional Lines Group
“We’re all – insurance carriers, brokers, agents, and policyholders – working toward a common goal, which is to reduce the frequency and severity of cyberattacks that companies are faced with."
Jacob Ingerslev,
Tokio Marine HCC - Cyber & Professional Lines Group
Share
Media
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
years in the industry
20+ years
Karen Adams
President and CEO at Fundserv
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
Share
Share
Media
Cyber: An ever-changing risk
Spotlight
Fundserv is the indispensable connectivity hub for the Canadian investment industry. Headquartered in Toronto, we electronically connect Manufacturers, Distributors, and Intermediaries, enabling them to buy, sell, and transfer investment funds. With more than 100 employees, Fundserv serves hundreds of members—executing up to 63 million yearly network transactions—and provides online access to more than 70,000 investment fund products.
Established in 1993, Fundserv is a private corporation that is owned by the industry we serve. Our 10 shareholders are a cross-section of Manufacturers, Distributors, and Service Providers who represent our members.
We operate using a cost-recovery model, meaning any unused profit may be rebated back to our members. In addition to our network and applications, we lead and facilitate industry committees and working groups that promote automation initiatives and establish the industry’s electronic standards.
By ensuring every trade is processed timely, accurately, and securely, Fundserv has rightfully earned a reputation for service excellence—a hallmark of more than 25 years in the investment industry.
Company Profile
Years of Experience
20+ years
Favorite Quote
“Be curious, not judgmental”
-Ted Lasso
Karen Adams
President and CEO at Fundserv
Career highlight
Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent
Read on
“We want to maintain a large, diverse, and continuously growing cyber insurance market.”
Jacob Ingerslev,
Tokio Marine HCC - Cyber & Professional Lines Group
“We’re all working towards a common goal – insurance carriers, brokers, agents, and policyholders – which is to reduce the frequency and severity of cyberattacks that companies are faced with.”
Jacob Ingerslev,
Tokio Marine HCC - Cyber & Professional Lines Group
IN Partnership with
In Partnership with
In Partnership with
1974
1977
2001
2005
2019
2015
2021
NAS Insurance Services formed as a specialty insurance MGU, underwriting on behalf of Lloyd's of London
1974
PIA (Professional Indemnity Agency) formed, with a focus on professional liability products
1977
HCC purchases PIA
2001
HCC purchases RAMCO, which has a focus on architects & engineers/contractors professional liability products
2005
Tokio Marine HCC acquires NAS Insurance to form Tokio Marine HCC – Cyber & Professional Lines Group (CPLG)
2019
Tokio Marine acquires HCC
2015
CPLG awarded the Five-Star Award for top cyber & professional liability carrier by Insurance Business America
2021
Milestones
Milestones
1974
1977
2001
2005
2019
2015
2021
NAS Insurance Services formed as a specialty insurance MGU, underwriting on behalf of Lloyd's of London
1974
PIA (Professional Indemnity Agency) formed, with a focus on professional liability products
1977
HCC purchases PIA
2001
HCC purchases RAMCO, which has a focus on architects & engineers/contractors professional liability products
2005
Delivers full-year results exceeding IPO forecasts
Feb 2022
Tokio Marine acquires HCC
2015
Tokio Marine HCC acquires NAS Insurance to form Tokio Marine HCC – Cyber & Professional Lines Group (CPLG)
2019
CPLG awarded the Five-Star Award for top cyber & professional liability carrier by Insurance Business America
2021
1974
1977
2001
2019
2015
2005
2021
NAS Insurance Services formed as a specialty insurance MGU, underwriting on behalf of Lloyd's of London
1974
PIA (Professional Indemnity Agency) formed, with a focus on professional liability products
1977
HCC purchases PIA
2001
HCC purchases RAMCO, which has a focus on architects & engineers/contractors professional liability products
2005
Tokio Marine acquires HCC
2015
Tokio Marine HCC acquires NAS Insurance to form Tokio Marine HCC – Cyber & Professional Lines Group (CPLG)
2019
CPLG awarded the Five-Star Award for top cyber & professional liability carrier by Insurance Business America
2021
Milestones
“The market has learned from its loss data that these are effective cyber-security controls,” says Ingerslev. “Most attacks can be prevented with a handful of security mechanisms, as threat actors will instead move on to easier targets. The focus should be on making yourself invisible by removing the common access points. There’s also a great deal of innovation happening at the individual carrier level … with scanning and dark-web monitoring to find common attack vectors and software vulnerabilities.”
In cyber, part of the challenge is the fact that threat actors are running a business where they have monetized cybercrime in such a lucrative way that it’s hard to give up. So far, the threat actors have been very innovative and have stayed a few steps ahead of the defense lines, according to Ingerslev.
“Will cyber exposure ever disappear? That is very unlikely,” he says, pointing out that technology is evolving every day and society is becoming increasingly connected. “The [digital economy] will continue to expand, which means we’re going to see more vulnerabilities and more technologies for threat actors to exploit and monetize through cybercrime.”
CONTACT US
SPECIALTY
BEST INSURANCE
RESOURCES
RISK MANAGEMENT
NEWS
Copyright © 2022 Key Media
Key Media
Insurance Business Australia
Insurance Business Canada
Wealth Professional Canada
People
Terms & conditions
Privacy policy
Conditions of use
About us
Contact us
RSS
Asia
NZ
AU
CA
US
UK
contact us
specialty
Best Insurance
Resources
RISK MANAGEMENT
News
Copyright © 2022 Key Media
People
Terms & conditions
Privacy policy
Conditions of use
About us
Contact us
RSS
Asia
NZ
AU
CA
US
UK
contact us
specialty
Best Insurance
Resources
RISK MANAGEMENT
News
Copyright © 2022 Key Media
People
Terms & conditions
Privacy policy
Conditions of use
About us
Contact us
RSS
Asia
NZ
AU
CA
US
UK