In a world where “your papers are not in order” can spell disaster for any public company, AXA XL is stepping up to the bureaucratic challenge with a new cyber insurance endorsement. This coverage aims to tackle the financial hurdles of adhering to the U.S. Securities and Exchange Commission’s (SEC) stringent cyber incident reporting requirements. You might not be able to fight city hall, but you can certainly prepare for its demands.
Michelle Chia, AXA XL’s Chief Underwriting Officer for Cyber in the Americas, highlighted the urgency of compliance under these new regulations. Public companies now face a tight deadline of just four days to disclose material cyber breaches, a task that demands rapid response and clear strategies. Chia emphasized the value of the new coverage: “In today’s rapidly evolving cyber threat landscape, the ability to respond swiftly and effectively is crucial. This endorsement ensures our clients can meet SEC deadlines without compromise, providing a safety net that allows them to focus on managing the incident itself.”
The SEC’s Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure rule requires public companies to report any significant cyber incidents that could impact their operations. This includes not only breaches and data theft but also the mandatory disclosure of these incidents in an 8-K form within four days once their material nature is confirmed.
“Meeting Compliance”
AXA XL’s endorsement addresses the costs associated with investigating these breaches, covering legal fees and compliance requirements, thus ensuring that companies can meet their reporting obligations without undue financial stress. Rachel Rossini, Cyber Product Manager at AXA XL, explained the strategic importance of this coverage, saying, “This endorsement is not just about meeting compliance; it’s about empowering companies to manage their cyber incident response effectively and with confidence. By specifically earmarking funds for these critical early actions, we help our clients navigate the aftermath of a breach with more agility and less financial strain.”
AXA XL’s cyber insurance team focuses on insurance coverage and risk management services, helping clients understand and manage their cyber risks. Their approach emphasizes risk assessment and responsive claims handling, supporting clients as they navigate the evolving challenges of cyber threats.