AXA XL backs cyber parametric first

London-based MGA Intangic has launched a new cyber parametric policy with backing from AXA XL.

The policy, CyFi, offers cyber insurance cover for large public corporations headquartered in the UK, with pay-outs based on two parametric triggers that need to be met: the level of malicious activity targeting a company, and a subsequent loss in value.

CyFi offers public corporations cover of up to £12.5 million in the UK market to cover losses from material cyber breaches. Intangic added that plans are underway to extend this offering to the US market.

“It really just comes down to thinking differently about the problem,” said Ryan Dodd, CEO and Founder of Intangic. 

“The security teams at large corporations have to manage cyber threats all day, every day. Our approach assesses cyber as a high-frequency risk. By accepting cyber-attacks as ‘constant’, we can measure a link between how these attacks are managed and the financial impact they have on corporate operations. Our parametric triggers make this link visible, enabling fast recovery from covered material breaches and giving corporations a new type of insurance risk transfer. By doing this, we have converted cyber risk to a language the board understands.”

“This is a simple and innovative solution to a complex problem,” added Luis Prato, CUO, UK & Lloyd’s at AXA XL. “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.”

“Companies are looking for a new approach from the market and a clear, fast recovery from their insurance protection – our product offering provides this,” said Mark Heath, head of Insurance and CUO , Intangic MGA.