CFC launches new insurance solution for US-based eHealth companies

Medical technology concept. Electronic medical record.Specialist lines underwriting agency, CFC Underwriting, today announces the launch of a brand new insurance solution for US companies and individual practitioners who provide telemedicine and other eHealth services.

In what is believed to be a first for this industry sector, CFC’s new policy provides affirmative coverage for bodily injury arising from both the advice companies and practitioners provide as well as bodily injury arising from technology failures and cyber incidents.

Timothy Boyce, CFC’s US Healthcare Team Leader, says: “Practitioners and companies operating in the eHealth space often bridge both the healthcare and technology sector meaning that they are open to a wide range of risks. In particular, as technology advancements continue to play a more crucial role in how healthcare is delivered, monitored and addressed, the potential problems these companies face from cyber events and system outages is very real. That’s why we’ve developed a policy which truly addresses the eHealth industry’s unique risk profile.”

CFC has tailored cyber and privacy cover in this new policy to address eHealth companies’ specific cyber exposures. As well as a separate section for extortion to address the growing threat of ransomware, CFC’s policy also covers HIPAA-related fines, penalties and resolution agreements. Cyber incident response services are offered with a nil deductible as standard.

Other features of the new offering include automatic coverage for physicians and practitioners, a separate section for technology E&O, breach of contract cover, and failure to perform cover for wearables and self-monitoring healthcare devices that have been manufactured or distributed by the insured.

CFC enhances UK tech cover with patent endorsement

Pair of glasses magnifying the words patent infringement on an official documentWe’ve enhanced our proposition for UK-based technology companies by adding the option of patent infringement cover – something rarely provided by other insurers to this industry sector.

Success in the tech sector often depends on the ability to create unique products and build on older ideas to develop new solutions. This means there is the risk of inadvertently trespassing onto others’ intellectual property (IP) which can result in costly legal proceedings.

CFC’s patent infringement cover helps tech businesses defend against these types of claims, covering legal fees and other expenses such as settlement pay-outs. Equally important, it gives insureds access to our experienced claims team and its selected panel of specialist patent litigators – a service that is essential in what is a highly specialised area of law that typically requires experienced counsel able to quickly establish a defence strategy.

CFC’s UK Tech & Media Team Leader, Kenny Carmichael, says: “Given the nature of the tech landscape, it is important for businesses to protect against patent risks. However, historically, this kind of cover for tech companies has been both complicated to obtain and often unaffordable. Recognising this gap, we streamlined our underwriting process for these types of risks, giving our clients the option to easily add broad, affordable patent cover to their policy.”

CFC’s existing policy for technology providers already provides defence of intellectual property rights infringement such as allegations of copyright or trademark infringement. It also includes extensive cyber and privacy cover as well as clear, unambiguous cover for breach of contract and bodily injury and property damage cover. Worldwide cover is provided as standard.

View the product leaflet here.

CFC wins three gongs at the 2017 Advisen Cyber Risk Awards

CFC wins three gongs at the 2017 Advisen Cyber Risk AwardsWe are incredibly proud to announce that CFC Underwriting was voted the winner in three categories at the 2017 Cyber Risk Awards presented by Advisen in New York on Wednesday, 14 June.

Our very own Graeme Newman was voted Cyber Risk Industry Person of the Year (London) while the introduction of our cyber incident response app was voted the Cyber Risk Innovation of the Year. Topping the evening off, CFC was named Cyber Risk Insurer of the Year.

CFC CEO David Walsh says: “There aren’t enough words to express the pride I feel in the recognition bestowed on our business by our peers and colleagues in the cyber insurance industry. The fact that Advisen’s Cyber Risk Awards are nominated and voted for by thousands of insurance professionals around the world makes the achievements of our entire cyber team all the more special.

“We’re passionate about this class of insurance and these awards will spur the team on to push the boundaries further as we seek to drive innovation in this rapidly changing and challenging sector of the market.”

We’ve partnered with leading kidnap response consultant, EOS Risk

We've partnered with leading kidnap response consultant, EOS RiskEOS Risk will join red24 and S-RM on CFC’s panel of experienced security companies specialising in global kidnap and extortion incidents.

K&R Team Leader at CFC, Mark Baker, says: “Highly skilled, swift response is of the utmost importance if something does go wrong in this area of insurance. Our cover provides a 24/7 emergency hotline in the event of an incident with no limit to consultant fees incurred. I’m delighted that we have been able to add EOS Risk to our existing panel, providing our insureds with an exceptional choice of experts able to help them when they need it the most.”

EOS Risk is a leading global professional security services company, providing a comprehensive range of risk services and solutions in analysis, audit, strategy, operations, travel and assistance.

Steve Harwood, Head of Special Risks at EOS comments “We are delighted to be partnering with CFC and look forward to developing a proactive relationship. This is another great example of how EOS can bring its class leading intelligence services and highly specialised K&R response capabilities to support CFC’S insured clients anywhere in the world.

Half of UK SMEs claim their broker fails to discuss cyber

Image of contract being signed by two peopleOur new research revealed that over a half of UK based SMEs (50.8%) say that their insurance broker has not raised the issue of cyber insurance with them.

Graeme Newman, Chief Innovation Officer at CFC, said: “This figure is quite shocking particularly when you put some context around it. 90% of our cyber claims come from businesses with less than £50 million in revenue and we get more than one claim every single day. This shows just how vulnerable SMEs are to cyber attacks. I think it sadly demonstrates that cyber insurance is still well outside the comfort zone of many brokers who are providing their clients with a wide range of commercial covers. However, the research shows that there is also a gulf in awareness amongst SMEs themselves as to the very real threat that cyber crime poses.”

Despite the fact that cyber offences now account for over half of all crime in the country, when SMEs were asked what poses the biggest threat to their business, cyber crime failed to top the list and a fifth claimed that they had never even assessed their business exposure to cyber risk. More than half (56%) do not have an incident response plan in place outlining roles and responsibilities in the event of a cyber attack.

Newman concluded: “The insurance industry should be doing more to raise awareness amongst SMEs that this is just as significant a risk as others that a business faces. In order to do that, we need to drop the hype and confusing rhetoric and provide our clients with clear facts and a crisp explanation of what cyber risk is actually about. With major changes to UK data protection legislation on the horizon, it is more important than ever that brokers put this on the agenda to ensure that their clients have the right cover in place to protect their business.”

CFC to host Fringe event at BIBA 2017

CFC to host Fringe event at BIBA 2017 As the provider of BIBA’s cyber and product recall schemes, we are pleased to be hosting our first-ever fringe event at this year’s conference in Manchester.

The event will take place between 13.15 and 14.00 on Wednesday 10 May. To register to attend simply click on this link: Places are limited and are on a first come first serve basis.

Following the recent launch of our cyber incident response app and revamp of our market-leading cyber product, the CFC session will focus on how the fast-paced nature of cyber threats and technological development necessitates ever-evolving insurance and incident response solutions. The event will also explore some of the myths and misunderstandings that surround the world of cyber insurance.

We will also be challenging delegates attending the event to show off their quirky side and compete for selfie stardom. Located on stand B51, brokers can visit our selfie booth and go a little wild with the props provided. Serious, goofy, funny or just downright strange … the best will be rewarded!

Selfie-snapping aside, delegates will have the opportunity to meet CFC’s underwriting experts managing both the cyber and the product recall schemes to find out more about each proposition and the benefits they deliver to BIBA members and their clients, as well as the many other specialty products available from CFC.

CFC Business Development Director, Pat Brice, says: “While insurance is undoubtedly a serious business, the coming together of the great and the good of our industry at BIBA 2017 is also an opportunity to have some fun. We’re all about looking at things differently, so we thought why not let BIBA delegates do the same, even if just for a few minutes! Of course we’ll also be talking about what’s going on in the market and what we’re doing to constantly challenge the status quo and deliver innovative insurance solutions for BIBA members.”

We look forward to seeing you there!

CFC launches revamped cyber proposition

CFC launches revamped cyber propositionToday we are pleased to announce the launch of our revamped cyber insurance product. In what represents a significant upgrade to our existing cyber proposition, the new look product provides a number of innovative cover elements to protect policyholders against the emerging threats of the digital age. This includes the provision of first party cover on an “each and every claim” basis, ensuring that policyholders aren’t restricted by a policy aggregate and that the full benefits of cover are available each time a crisis strikes, even if they experience multiple cyber incidents in the same policy period.

The policy is also one of the very few to offer full retroactive cover as standard, meaning that policyholders are covered for breaches they discover during the policy period, even if it first occurred long before. Symantec has reported that the average time to discover a breach is 205 days, making this a particularly important feature.

Our Cyber Product Leader, James Burns, says: “No modern business can escape cyber risk, but as cyber criminals have become more sophisticated and as we live in an increasingly connected world, the nature of cyber incidents is changing. Insurance policies have to evolve to reflect the changing environment. We have completely reconstructed our proposition and now offer policyholders more than just a comprehensively worded policy, but rather an all-encompassing cyber incident solution.”

He continues: “We’ve built an extensive in-house incident response capability to ensure that cyber incidents are dealt with quickly and efficiently in real time. And because we want to encourage engagement with our experts as soon as possible for a swift resolution, we’re offering initial response services with no deductible payable by the insured.”

Our new proposition also provides broader cover for senior executive officers who are regularly targeted in cyber attacks, covering theft of personal funds of individuals as well as those of the company. And if a suit is brought against directors and officers following a cyber attack, our policy provides affirmative cover in the event that their management liability policy doesn’t respond.

The product suite includes comprehensive computer crime cover, system repair costs and incident response costs in addition to the limit.

CFC team acquires business with support of Vitruvian

CFC's management team acquires business with support of VitruvianCFC, the largest independent Managing General Agent (MGA) in the UK, today announced that its Founder and Chief Executive David Walsh and the rest of the management team have agreed to acquire the business with support of leading international growth capital investor, Vitruvian Partners.

The investment from Vitruvian will enable CFC to invest further in building its unique portfolio of emerging and specialty risk products, expand its global distribution base, and develop its industry-leading technology platform, in order to build on the Company’s premier position in the specialty insurance market.

The transaction is expected to close in the summer of 2017, subject to regulatory approval.

David Walsh, Chief Executive Officer of CFC, commented: “This is an incredible deal for our staff, carriers, brokers and customers – because it shows that we want to take this business to the next level and build the world’s pre-eminent MGA. We have always been committed to independence and wider employee share ownership and this deal is designed to deliver those two goals.

I would like to thank our existing investors, including Richard Corfield, ex-chairman of RK Harrison, Mike Rees, co-founder of Benfield and Hugh Willis, co-founder of BlueBay Asset Management who have been hugely supportive of CFC during the last five years. We are now extremely excited to welcome Vitruvian as we embark on a new chapter for CFC. We continue to believe that our combination of great people, processes and technology puts us in the best possible position to capitalise on the opportunities we see ahead.”

Joseph O’Mara, a Partner at Vitruvian, added: “Vitruvian is delighted to back David and his team at CFC, at a time of rapid growth for the company and the markets which it serves. The management team have done an extraordinary job in building CFC to be the leading independent UK MGA, and we believe that through continued focus on industry-leading products, customer service, and innovation, CFC is poised for continued success.

Our partnership with management will allow the company to build on recent success. We are delighted to partner with David and the broader management team and look forward to supporting them during the next phase of the Company’s growth.”

About CFC
Headquartered in London, CFC incorporates two trading entities: CFC Underwriting and Modus. Together these businesses are backed by 34 Lloyd’s syndicates and have a global distribution network of over 1,900 broker offices and more than 206,000 customers. Over the last three years, CFC’s gross premium income grew at a compound annual rate of more than 40% to over $200M in 2016.

In 2016, CFC won six awards, including MGA of the Year and Best User of Technology from the Insurance Times Awards 2016, MGA of the Year from the Insurance Insider Honours and Cyber Risk Insurance Provider of the Year at the Commercial Insurance Awards.

The company were advised by Evercore, Norton Rose Fulbright, Deloitte and PwC. The management team was further advised by Wyvern Partners, Macfarlanes and Deloitte.

About Vitruvian Partners
Vitruvian is an independent private equity firm which specialises in growth middle-market investments. Vitruvian focuses on dynamic situations characterised by rapid growth and change across industries spanning information technology, financial services, life sciences & healthcare, media, and business and consumer services. Vitruvian is currently investing the Vitruvian Investment Partnership II, which closed in December 2013 at its self-imposed cap of £1 billion. The firm’s previous investments in the financial services sector include Callcredit, RL 360 and Ebury Partners.

Vitruvian was advised by KPMG (Corporate Finance and Financial Diligence), Kirkland & Ellis, Marlborough Partners, Oliver Wyman, Bearing Point, Marsh and Clyde & Co.

CFC increases limits on transaction liability products

CFC increases limits across transaction liability product suiteToday, we’re happy to announce that we have increased the available limits of our transaction liability insurance product suite across all territories.

We now have the capacity to offer limits up to $50m in North America, £30 million in the UK, €35 million in Euro zone countries and AU$50m in Australia.

Matthew Giddings, Transaction Liability Practice Leader, says: “Transaction liability insurance continues to gain traction with an increasing proportion of M&A deals using this type of cover as both a risk management and deal facilitation tool.

“CFC’s transaction liability practice has enjoyed a strong first trading period. Our focus on service, the experience of our underwriters and our ability to leverage other CFC specialisms such as cyber, intellectual property and product recall make us an attractive market. The increase in our capacity is an endorsement of our proposition in this fast-growing and competitive sector. We’re positive about the future and look forward to building on the success of our first year throughout 2017.”

Backed 100 percent by various Lloyd’s syndicates, the CFC offering is designed to meet the needs of clients and M&A professionals in the mid-market, lower mid-market and SME spaces across the world.

CFC introduces new Cyber Incident Response app

CFC introduces new Cyber Incident Response appWhen an incident occurs, the key to successfully managing the situation is acting fast and getting the right support at the right time. Policy documents are often filed away for the records, not daily use or reference, and finding the correct phone number to report an incident can be a hassle when ransomware has the system in lock-down. That is why we have developed our Cyber Incident Response app – providing policyholders with easy access to our 24/7 global cyber incident response centre.

With a focus on customer service excellence, our app is a crucial tool for incident management. At the click of a button, users can report incidents, notify claims and request urgent assistance at any time of the day or night. The app also includes a wide array of additional features including cyber and tech news, policy reference and incident response team coordination.

Having been previously recognised for our exceptional use of technology to improve customer experience, we felt it was time to prove our innovation chops once more and develop a game-changer in incident response management. We are confident the app will prove a valuable complement to our in-house team of specialists, one of the largest and most experienced cyber claims teams in the London market. We plan to further expand app functionalities over the year and look forward to sharing these updates with our partners.

Download the app today

The app is available for free on Apple iTunes and Google Play platforms. Simply search for ‘CFC cyber incident response’, and once downloaded, use our demo account to trial the service.

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