Willis Towers Watson has introduced CyFly, an insurance solution specifically tailored to cover cyber exposure affecting the airline industry.
The recent Willis Towers Watson Industry Risk Index identified failure of critical IT systems as the most significant risk facing the global aviation industry.
Airlines are exposed to significant financial and reputational damage in the event of a network incident caused by people or technology risk, said the broker.
CyFly forms part of Willis Towers Watson’s “integrated approach to cyber risk by focusing on the human element associated with risk and technology,” it added.
CyFly was developed in close collaboration with American International Group and is available globally.
CyFly includes the following coverages specific to the airline market:
- Extension of business interruption referable to third parties. Airlines rely on a myriad of third party services to provide continuity of service. In off-the-shelf cyber insurance policies, such third parties’ networks aren’t brought within the scope of network business interruption.
- Business interruption cover is often limited to IT service providers only. CyFly offers cover in respect of a broad range of technology and non-technology providers such as global distribution systems, baggage processing,aircraft maintenance, fuelling and catering and airport security.
- Network business interruption cover at a pre-agreed minimum value per flight cancellation and claims preparation costs cover
- Cover for aviation regulatory fines and compensation in relation to specific cyber incidents.
The product was designed to respond to the specific cyber risk concerns of aviation clients, said Glyn Thoms, executive director, Cyber & TMT, Willis Towers Watson.
John Rooley, CEO, Willis Towers Watson Global Aerospace, commented: “The launch of CyFly is a defining moment for the aviation industry in terms of the approach to cyber risk within an enterprise risk management framework and we are extremely excited to play our part in that.”
Chris Burgess, AIG’s UK head of Cyber said: “We’re delighted to be working with Willis Towers Watson on this product that has been developed specifically for the airline industry, capitalizing on AIG’s expertise and product range in cyber and in line with our commitment to collaborating with our partners to create industry specific products.”
Source: Willis Towers Watson
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