JLT cyber insurance extended to Channel Islands

JLT Specialty has been granted a license to offer cybersecurity insurance to private fund managers based in Jersey and Guernsey.

The insurance broker will also offer other insurance services including management liability insurance and professional indemnity insurance to the fund managers.

It joins a small number of brokers offering coverage to Jersey and Guernsey managers.

The license was granted by the jurisdictions’ regulators, the Guernsey Financial Services Commission and the Jersey Financial Services Commission.

Cyber insurance safeguards businesses against digital and electronic crime, including phishing scams, malware infections, data hacks and cyber extortion. It protects a firm’s intangible assets including company data and sensitive customer information. It can also cover the cost of bringing in advisors to manage the aftermath of a cyberattack.

Cybersecurity is one of the most pressing concerns among private fund managers, with 85 percent of those taking part in a recent PwC survey saying it was a significant worry. Cyberattacks at private equity portfolio companies increased by an average 65 percent in 2016, with each incident costing around $2.5 million, according to separate PwC data.