Cyber insurance provider MGA Coalition has announced a new multi-year capacity partnership with Allianz to back its US and UK cyber programmes.
Under the terms of the agreement, Coalition will have long-term committed capacity for its cyber insurance programmes, as Allianz will assume a share of all Coalition’s US non-admitted cyber programmes, while leading Coalition’s UK cyber program. This deal will expand Allianz’s cyber business in the UK and US.
Strengthening Cybersecurity in the UK and US
In a press release statement, Allianz noted that the global economy loses up to USD 1.5 trillion annually due to cyber attacks. To aid companies in bolstering their cybersecurity efforts, Coalition combines cyber coverage with AI-powered security tools that enables Coalition’s customers to identify, prevent, and respond to cyber risk.
Scott Sayce, Global Head of Cyber at Allianz, observed that “cyber is one of the top risks for businesses globally and while the risk landscape is not getting any easier, we are expanding our offering for customers. We constantly urge our customers to strengthen their cyber defences and, with its innovative approach to cyber risk, Coalition has proven that data and technology can be very effective to prevent and resolve cyber claims.”
Shawn Ram, Head of Insurance for Coalition, also expressed his support for the partnership.
“We’re thrilled to announce that Allianz, one of the world’s largest insurance companies, is partnering with Coalition to protect the unprotected. Far too many organizations simply aren’t prepared to manage and mitigate cyber risk. Coalition’s Active Insurance offers demonstrably better protection from cyber threats and with Allianz’s support we will be able to provide Active Cyber Insurance to more organizations worldwide.”
Notably, in both the UK and the US, small businesses and local governments have been the targets of relentless ransomware attacks and hacking attempts. For instance, in the US, Chairwoman Elissa Slotkin said that Michigan state services get targeted by hackers 90 million times a day. In addition, the stress and taxing demands of cybersecurity-related work have driven many skilled cybersecurity workers to quit their jobs, resulting in a brain-drain.
The UK and the US also continue to be greatly concerned about hacking attempts related to Russia’s invasion of Ukraine, which has led to an increase in the number of sophisticated cyberattacks since February.
As such, it is crucial that companies and governments in the UK and US ramp up their cybersecurity capabilities. It remains to be seen how effective the Allianz-MGA Coalition will be in ameliorating the cybersecurity crisis in the UK and US.