(CU)_Google is teaming up with global insurers Allianz and Munich Re, to cover cyber breaches and related risks faced by businesses which use its Cloud service. The tech giant said on Tuesday (March 2) that this is the first time a major provider has opened up such a service to its clients.
Although insurers usually tread carefully when dealing with cyber risks, however, a partnership with Google gives Allianz and Munich Re special access to data in order to price the risk by taking a look at what controls the firms have in place.
Thomas Kang, head of North American cyber, tech and media at Allianz’s AGCS unit noted that this type of access to data is “extremely key” for insurers. “This is data that we as insurance carriers traditionally have not had access to,” he said.
It is reported that the initial target customers will be US-based companies with an annual revenue between $500 million and $5 billion, while Munich Re says that the parties intend to expand this revenue scale within a short period.
“We didn’t want to overreach coming out of the box. But the plan is obviously to expand this offering both up and down the revenue scale very shortly,” Bob Parisi, head of cyber solutions in North America for Munich Re, said.
Meanwhile, the two insurers will cover up to $50 million in potential losses, which will include a coverage of lost revenue for up to a full year, as opposed to six months which was previously covered.
According to global research firm Gartner Research, by 2024, more than 45 per cent of IT spending will shift from traditional solutions to the cloud. Experts note that beyond the immediate benefit for Google Cloud customers, the partnership will enable the two insurers improve their cyber risk modelling.
