Forwarded From: Nicholas Charles Brawn <ncb05@uow.edu.au>
BW 4/22/98 4:59 PM
Information Risk Group Joins Underwriters at Lloyd's -- London, UK -- to
Announce Computer Security and Information Loss Insurance
Business Editors
PORTLAND, Ore.--(BUSINESS WIRE)--April 22, 1998--
Rise in Computer Crime Creates Insurance Need to Cover Loss from
Destruction or Disappearance of Electronic Data Including Loss
from Business Interruption and Extortion
Information Risk Group L.L.C. announced today that they joined forces
with the Underwriters at Lloyds, and Lloyd Thompson, Ltd. (a London
broker) in a new computer security insurance product, Computer Information
and Data Security Insurance (CIDSI).
CIDSI is the first insurance product that provides a full range of
coverage for business information systems and information losses. Prior to
the new CIDSI product, there has not been a specific product to cover
organizations, other than banks, for financial losses sustained as the
result of employee or intentional hacking.
With computer crimes on the rise, CIDSI is an invaluable product for
any company that has a computer information system. A recent survey of
250 businesses jointly conducted by the Computer Security Institute, Inc.
in San Francisco and the FBI found that the dollar value losses resulting
>from computer crimes (including internal and external hacks) totaled $137
million last year, compared with about $100 million in 1996, a rise of
37%. Users also reported that the average losses from theft of
proprietary company information leaped 68%, from approximately $955,000 in
1996 to about $1.68 million last year.
"With computer crimes growing at such an alarming rate, we are very
pleased to be able to team up with Lloyds underwriters to provide this new
CIDSI product to our clients," said John J. Posey, president of
Information Risk Group, L.L.C. "Together we are able to combine the
Underwriters of Lloyds innovative insurance product with our effective
risk reduction services which will help prevent hackers or extortionists
from succeeding in their malicious acts. Information Risk Group will
provide loss services to CIDSI policy holders by first assessing the
policy holder's information system and secondly by providing an immediate
response to incidents and losses covered in their policy"
The Underwriters at Lloyd's CIDSI product offers coverage up to a
limit of $50 million in combination with Information Risk Group's embedded
computer security and information risk services to prevent and mitigate
losses from hacking, extortion, sabotage, and theft involving computer
systems and data. The embedded services follow a general model of
services that are similar to Kidnap and Ransom Insurance coverages.
The CIDSI coverage responds to loss due to:
-- Fraudulent and malicious acts of employees or third parties
-- Loss of computer systems and programs
-- Loss of electronic data and media
-- Computer virus attacks
-- Extortion against information systems
-- Business interruption
"The new CIDSI product covers a large gap that is left with
traditional insurance policies," said Simon Milner, of London insurance
broker Lloyd Thompson Ltd. "Other existing products exclude loss from
acts of employees, directors, trustees or representatives. The new CIDSI
product not only covers these losses but helps put systems in place to
prevent them from happening in the first place."
"Information technology is a new arena for our risk management
program," said Reginald G. Schindler, director of risk management at
Oregon Health Sciences University. "We feel fortunate that we were able
to bring the security experts from Information Risk Group into our
organization. They enabled us to add a high level of experience and
expertise to our risk management and information technology initiatives.
We have a team approach to risk management and we view Information Risk
Group as a valuable member."
The CIDSI product and services were developed in a joint effort of SVB
Syndicates, Ltd., the leading Lloyd's underwriter for the CIDSI product,
Lloyd Thompson Ltd., of the Jardine Lloyd Thompson Group, Information Risk
Group, L.L.C., Oregon Health Sciences University (OHSU), Corporate
Security Services, Inc., and Asset Management Technologies, Inc. For more
information visit the Information Risk Group web site at
www.inforiskgroup.com.
Information Risk Group Background
Information Risk Group, L.L.C. specializes in information loss and
computer security services for businesses, law firms and governmental
agencies. The firm's headquarters is located in the Portland Oregon
metropolitan area with branch offices in Raleigh NC, Atlanta GA, Tucson
AZ, and San Jose CA and an affiliate branch office in London, UK.
Information Risk Group's operations are executed through its core business
partners Corporate Security Services Inc. and Asset Management Solutions
Inc.
CONTACT: Information Risk Group, L.L.C.
John J. Posey, 888/828-4474
-o-
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Received on Thu Apr 23 09:23:37 1998