Speaker Firms and Organizations Discuss Cybersecurity Insurance

Speaker Firms and Organization:
Carr, McClellan, Ingersoll, Thompson &
Horn, PLC
Helen A. Christakos
Senior Counsel and Chair of the IP, Privacy &
Data Security Group
US Department of Homeland Security
Tom Finan
Senior Cybersecurity Strategist and
Counsel
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Presented By:
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September 23, 2014
Partner Firms:
Walker Wilcox Matousek LLP
Celeste M. King
Founding Partner
HCC Insurance Holdings, Inc.
Brook Dutcher
Underwriting Manager
CRC Insurance Services, Inc.
Clay Segrest
Professional Liability Broker

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Partner Firms:
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September 23, 2014
For companies that require the highest caliber of legal expertise coupled
with a responsive and results driven approach, Carr McClellan is the
boutique California business and business litigation law firm offering top-tier
expertise and a full range of legal services. Carr McClellan serves both
public and private companies, staying focused on the business objectives
while giving clear advice and maintaining a flexible and practical approach to
solving our clients’ business and legal matters. We remain deeply engaged
in our clients’ businesses, tackling every issue with energy and initiative and
we offer advice and solutions that work in the real world.

Partner Firms:
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September 23, 2014
Walker Wilcox Matousek LLP, a Chicago-based law firm with
offices in Houston, Texas, is at the forefront of the dynamic area
of privacy law. WWM counsels clients on coverage for privacy
risks under privacy, technology, first party, third party CGL
policies and reinsurance contracts. WWM has been involved
with privacy risks involving law firms, hospitals, financial
institutions, retail, non-profit organizations, municipalities and
schools.
Headquartered in Houston, Texas, HCC Insurance Holdings, Inc. is a leading specialty insurer with
offices in the United States, the United Kingdom, Spain and Ireland. As of March 31, 2014, HCC had
assets of $10.6 billion and shareholders' equity of $3.8 billion. HCC's major domestic and international
insurance companies have financial strength ratings of "AA (Very Strong)" from Standard & Poor's
Corporation, "A+ (Superior)" from A.M. Best Company, Inc., "AA (Very Strong)" from Fitch Ratings,
and "A1 (Good Security)" from Moody's Investors Service, Inc.
For more information about HCC, please visit http://www.hcc.com.
About HCC Specialty
Headquartered in Wakefield, Massachusetts, HCC Specialty is among the industry’s leading
managing underwriters of innovative specialty insurance products, including: high limit disability,
professional liability, public entity, crisis management, contingency, DIC, prize indemnity and special
program business. HCC Specialty, a division of HCC Insurance Holdings, Inc., is comprised of HCC
Specialty Underwriters, Inc., Professional Indemnity Agency, Inc., G.B. Kenrick & Associates, Inc. dba
Kenrick Corporation, InsPro Corporation and HCC Public Risk.
For more information please visit http://www.hcc.com/specialty

Partner Firm:
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September 23, 2014
CRC was founded in 1982 and specializes in Property, Casualty, and
Professional risks. CRC’s extensive market experience allows it to draw on
a wide range of resources from across the country and around the
world. Created through the combination of CRC and Crump in April 2012,
the new CRC Wholesale Group expanded to 1,800 employees and 50
offices nationwide. CRC’s Professional Liability Department - CRC-PRO - is
a mainstay leader in Surplus Lines Market placement and innovation.

Brief Speaker Bios:
Tom Finan
Tom Finan is a Senior Cybersecurity Strategist and Counsel with the Department of Homeland Security’s National Protection and
Programs Directorate, NPPD, where he leads work on cybersecurity insurance and cyber risk management in support of
implementation of Executive Order 13636, “Improving Critical Infrastructure Cybersecurity.” Tom established DHS’ Cybersecurity
Insurance webpage, accessible through the search engine of your choice, which includes a series of readout reports that describe
DHS’ efforts in these areas. Previously, Tom led the effort to develop a resiliency-focused risk analysis and modeling office for NPPD
that examines both cyber and physical threats to critical infrastructures, systems, and the public. Prior to his arrival at DHS, he served
as the Staff Director and Counsel for the Subcommittee on Intelligence, Information Sharing and Terrorism Risk Assessment with the
U.S. House Committee on Homeland Security where he advised the Subcommittee Chair, Congresswoman Jane Harman. Tom
previously worked as an attorney for the FBI and in private litigation practice.
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September 23, 2014
Helen A. Christakos
Helen is an experienced business lawyer who represents clients in commercial transactions involving cutting edge intellectual property
(IP) and technology issues. She brings a practical, business-oriented approach to advising companies ranging from global public
companies to emerging start-up ventures in developing, licensing, selling, acquiring, protecting and commercially exploiting intellectual
property and technology assets.
She also devotes a significant portion of her practice to advising clients in a wide variety of industries on privacy, data security and
ecommerce matters. Helen works with companies to assess their legal obligations and risks and helps design and implement
practical, cost-effective plans for mitigating such risks. Helen conducts numerous CLE presentations to update in-house counsel on
changes in privacy and data security law.

Brief Speaker Bios:
Celeste M. King
Celeste’s experience is with privacy risks and insurance. She advises insurers and reinsurers on coverage for privacy risks and
breaches involving first and third party CGL policies, drafts policies and underwriting guidelines and prepares breach response
strategies. Celeste counsels clients on state and federal regulations involving privacy laws, developments in case law and emerging
issues such as standing to sue and recovery of reputational damages. She regularly deals with privacy risks to industries such as
health care, legal and other professions, financial institutions, retail, insurance agents, public entities, education and energy.
Celeste is also an experienced reinsurance lawyer, counseling clients on treaty and facultative risks and representing clients in
reinsurance litigation and arbitration.
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September 23, 2014
Brook Dutcher
Brook Dutcher is Specialty Underwriting Manager-Technology E & O/Cyber Insurance product manager with HCC Specialty in New
York. Brook focuses on new product development, product growth and strategy for the company. Previously he was the Technology E
& O/Cyber Insurance product manager for NAS Insurance in California. He underwrote various lines and programs with Axis
Insurance and with ACE Westchester in Atlanta. Prior to his career in insurance, Brook worked extensively in banking.

Brief Speaker Bios:
Clay Segrest
Mr. Segrest is a wholesale broker for CRC Insurance Services, Inc. specializing in Professional Liability, Executive Risk/Management
Liability, and Network Security & Privacy Liability. He has played an instrumental role in his company’s efforts to expand its presence
and influence in the Cyber Security & Privacy Liability marketplace. He has lectured the Alabama Independent Insurance Agents
Association on this topic and he has helped lead CRC’s commitment to the growth and development of Cyber Liability products for
producers and their clientele. As demand for Cyber coverage increases, CRC continues to provide complex risk solutions for
insured’s realizing the magnitude of the exposure. Mr. Segrest received his Masters of Business Administration Degree from the
University of Alabama at Birmingham and his undergraduate degree from Birmingham-Southern College.
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► For more information about the speakers, you can visit: http://theknowledgegroup.org/event_name/cyber-liability-insurance-an-essential-and-urgently-needed-business-investment/
September 23, 2014

Cyber Liability Insurance is a relatively new product that is developing rapidly due to increasing frequency and sophistication of cyber-attacks.
Stricter regulation and enforcement of cyber crime are making purchase of Cyber Liability & Data Risk Insurance a necessity
for many companies.
Experian Inc. reports that almost 70% of business owners have yet to purchase some sort of insurance against cyber attack even
though many business owners know cyber attack is a serious business risk. Many companies face significant costs from litigation
following cyber attacks and even face the prospect of bankruptcy. In fact, The Gartner Group reports that 40% of all businesses
experiencing data breaches are out of business within 6 months and 51% end business within two years following such cyber attacks.
In this webinar, experts in the fields of cyber crime, cyber crime regulation and enforcement, insurance, cyber law, and network
systems security will explain the risks, the types of insurance, and why it is increasingly essential to purchase such insurance. Special
topics for discussion include:
• Cyber Security Insurance Laws and Regulations
• Cyber Liability Market and Claims Trends
• Assessing Cyber Liability and Risks: Breach Litigation Issues
• Cyber Insurance Types and Coverage Needs
• Cyber Insurance Policies De-mystified
• Subrogation: Vendor and Business Partner Liability Claims
• Benefits of International Vulnerability Purchase Program
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September 23, 2014

Featured Speakers:
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September 23, 2014
SEGMENT 1:
Tom Finan
Senior Cybersecurity Strategist and Counsel
SEGMENT 2:
Helen A. Christakos
Senior Counsel and Chair of the IP, Privacy & Data
Security Group
Carr, McClellan, Ingersoll, Thompson & Horn, PLC
SEGMENT 3:
Celeste M. King
Founding Partner
SEGMENT 4:
Brook Dutcher
SEGMENT 5:
Clay Segrest

Introduction
Tom Finan is a Senior Cybersecurity Strategist and Counsel with the Department of Homeland Security’s National
Protection and Programs Directorate, NPPD, where he leads work on cybersecurity insurance and cyber risk management
in support of implementation of Executive Order 13636, “Improving Critical Infrastructure Cybersecurity.” Tom established
DHS’ Cybersecurity Insurance webpage, accessible through the search engine of your choice, which includes a series of
readout reports that describe DHS’ efforts in these areas. Previously, Tom led the effort to develop a resiliency-focused risk
analysis and modeling office for NPPD that examines both cyber and physical threats to critical infrastructures, systems,
and the public. Prior to his arrival at DHS, he served as the Staff Director and Counsel for the Subcommittee on
Intelligence, Information Sharing and Terrorism Risk Assessment with the U.S. House Committee on Homeland Security
where he advised the Subcommittee Chair, Congresswoman Jane Harman. Tom previously worked as an attorney for the
FBI and in private litigation practice.
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September 23, 2014
SEGMENT 1:
Tom Finan

Cybersecurity Insurance: DHS/NPPD Workshop Series
Cyber Liability Insurance Webcast
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September 23, 2014
SEGMENT 1:
Tom Finan

Strategic Background
• To what extent can the cybersecurity insurance market offer relevant coverage at reasonable prices in
return for an insured’s adoption of cyber risk controls and procedures that improve its risk posture?
• Fire insurance  carriers require sprinkler and other fire suppression systems as conditions for
coverage.
• Cybersecurity insurance  what comparable risk controls and processes apply to cyber?
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September 23, 2014
SEGMENT 1:
Tom Finan

• The third-party cybersecurity insurance market covers losses that a company causes to third parties,
typically costs arising from a data breach (e.g., monetary damages arising from privacy and network
security claims, some civil fines and penalties, attorneys’ fees).
• The first-party cybersecurity insurance market covers a company’s own, direct losses from a cyber
incident (e.g., lost profits, loss of intellectual property, loss of reputation, extraordinary costs
associated with reconstituting damaged data and systems).
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September 23, 2014
SEGMENT 1:
Tom Finan

• Four DHS/NPPD workshops since October 2012 have convened key stakeholders to engage on this
topic.
• Participants identified key challenges to a more robust first-party market that provides coverage for
cyber-related critical infrastructure loss:
 Lack of actuarial data
 Lack of common cyber management best practices, metrics, and standards
 Lack of understanding of critical infrastructure “interconnectedness” and related domino effects
that could result from a cyber attack
 Confusion about applicability of current insurance
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September 23, 2014
SEGMENT 1:
Tom Finan

• Given these shortcomings, many carriers instead currently focus on the effectiveness of an
organization’s cyber risk culture when assessing whether to provide cybersecurity insurance coverage
and in what amounts.
• The Four Pillars:
 Executive Leadership
 Education and Awareness
 Technology
 Relevant Information Sharing
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September 23, 2014
SEGMENT 1:
Tom Finan

• Effective cyber risk culture takeaways:
 The business case for investing against cyber risk has not been made
• Conveying cyber risk in terms of financial and reputational harm is difficult
• True enterprise risk management (ERM) programs should address cyber risk
 Need for cost/benefit research on cybersecurity solutions
 Appropriate expectations for insurance in the cyber risk management space given competition
and uncertainty concerns
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September 23, 2014
SEGMENT 1:
Tom Finan

• Carriers reference three core questions when assessing each of these pillars and determining
whether a company is a safe insurance “bet”:
 Does the company know what cyber incidents it has actually experienced based on its own data
and reports from outside sources?
 Does the company know – through public sources and private conversation – what kinds of
cyber incidents are happening to other companies like it?
 What informed cyber risk management investments is the company making based on this data?
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September 23, 2014
SEGMENT 1:
Tom Finan

• EO 13636 – “Improving Critical Infrastructure Cybersecurity”
• Impact of EO 13636 and NIST Cybersecurity Framework on cybersecurity insurance market:
 Risk management tool – common taxonomy that supports an enhanced underwriting roadmap
 Potential boon to market capacity – stemming the stand-alone trend
 Potential cost differentiator – Framework users and non-users
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September 23, 2014
SEGMENT 1:
Tom Finan

Cybersecurity Insurance: Insurance Industry Working Session
• In January 2014, the White House requested that DHS/NPPD lead a series of cybersecurity insurance
incentive discussions to support EO 13636.
• DHS/NPPD initiated the new discussions with an insurance industry-only working session in April
2014 centering on three topics:
 Cyber incident information sharing (creation of a cyber incident data repository)
 Cyber incident consequence analytics
 Cyber-inclusive ERM programs
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September 23, 2014
SEGMENT 1:
Tom Finan

DHS Cybersecurity Insurance Webpage:
http://www.dhs.gov/publication/cybersecurity-insurance.
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September 23, 2014
SEGMENT 1:
Tom Finan

Introduction
Helen is an experienced business lawyer who represents clients in commercial transactions involving cutting edge
intellectual property (IP) and technology issues. She brings a practical, business-oriented approach to advising companies
ranging from global public companies to emerging start-up ventures in developing, licensing, selling, acquiring, protecting
and commercially exploiting intellectual property and technology assets.
She also devotes a significant portion of her practice to advising clients in a wide variety of industries on privacy, data
security and ecommerce matters. Helen works with companies to assess their legal obligations and risks and helps design
and implement practical, cost-effective plans for mitigating such risks. Helen conducts numerous CLE presentations to
update in-house counsel on changes in privacy and data security law.
In addition to her law practice, Helen is an Adjunct Professor at Santa Clara University School of Law, where she teaches
J.D. and LL.M. level classes in Technology and Intellectual Property Licensing.
25
September 23, 2014
SEGMENT 2:
Helen A. Christakos
Security Group

State Data Security Breach Notification Laws
1. What do they cover?
• Unencrypted personal information
• Personal Information generally includes first name/first initial and last name in combination
with:
i. SS Number
ii. Drivers License Number
iii. Financial Account Number + code
iv. Credit Card Number + code
v. Debit Card Number + code
2. What is required in the event of a breach?
• Requirements differ from state to state
• Remedies differ from state to state
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September 23, 2014
SEGMENT 2:
Helen A. Christakos
Security Group

Amendment to California’s Data Security Breach Notification Law
1. Went into effect January 1, 2014
2. Law now covers on-line accounts
3. Electronic notice may now be given in certain circumstances
27
September 23, 2014
SEGMENT 2:
Helen A. Christakos
Security Group

What should your Cyber Insurance Policies Cover
1. Both first-party and third-party risks
2. Unencrypted devices
3. Data breaches caused by third parties
4. Data transmissions outside the US
5. PCI liability (if applicable)
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September 23, 2014
SEGMENT 2:
Helen A. Christakos
Security Group

Introduction
Celeste’s experience is with privacy risks and insurance. She advises insurers and reinsurers on coverage for privacy risks
and breaches involving first and third party CGL policies, drafts policies and underwriting guidelines and prepares breach
response strategies. Celeste counsels clients on state and federal regulations involving privacy laws, developments in case
law and emerging issues such as standing to sue and recovery of reputational damages. She regularly deals with privacy
risks to industries such as health care, legal and other professions, financial institutions, retail, insurance agents, public
entities, education and energy.
Celeste is also an experienced reinsurance lawyer, counseling clients on treaty and facultative risks and representing clients
in reinsurance litigation and arbitration.
Celeste is licensed in Illinois and District of Columbia and is AV Rated by Martindale-Hubbell.
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September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Insurance For Cyber Risks
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September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Know The Insured’s Risk
- Federal and State Regulations
- International Considerations
- Industry Standards (e.g. PCIC)
- Professional Regulatory Agencies
- Contracts-Vendor Management
- Reputation
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September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Know The Coverage Already In Place
•CGL Coverage
-New ISO Exclusion
•First Party Coverage
•Directors and Officers Coverage
•Professional Liability
32
September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Know The Coverage Needed
• What are the Maximum Limits
• Sublimits
• Crisis Management (Notification, PR)
• Regulatory Fines
• Business Interruption
• Defense Expenses
• Cyber Extortion
33
September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Cyber Coverage Issues
• Terrorism or Hacktivism or Cyber War
• Unauthorized collection of data
• Contractual liability
• Company-wide training
• Paper/non-electronic breaches covered
• Confidentiality Agreements and NDAs
• Cloud
• International laws
34
September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Keep Current With Changes
• Wordings Change With Technology
–”internet of things”
- bodily injury (e.g. medical devices)
• Court opinions interpreting wordings
• Changes in state and federal laws
• Competition in the marketplace
35
September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

Challenges to Insurers and Reinsurers
• Uncertainty of the legal framework
• Cyber is a business issue, not only IT
• Pricing the risk
• Keeping the privilege
• Selecting the experts: who and when
• Aggregation of multiple losses
36
September 23, 2014
SEGMENT 3:
Celeste M. King
Founding Partner

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Introduction
Brook Dutcher is Specialty Underwriting Manager-Technology E & O/Cyber Insurance product manager with HCC Specialty
in New York. Brook focuses on new product development, product growth and strategy for the company. Previously he was
the Technology E & O/Cyber Insurance product manager for NAS Insurance in California. He underwrote various lines and
programs with Axis Insurance and with ACE Westchester in Atlanta. Prior to his career in insurance, Brook worked
extensively in banking.
40
September 23, 2014
SEGMENT 4:
Brook Dutcher

The Value of Cyber Insurance
An overview from a carriers perspective
41
September 23, 2014
SEGMENT 4:
Brook Dutcher

Coverage Development
42
September 23, 2014
SEGMENT 4:
Brook Dutcher
Breach Response and
Crisis Management as
stand alone coverage
Technology E & O
including 3rd party
Privacy & Security and
eventually 1st party
coverages
Technology E & O
Products
Specialized custom
liability coverage

Diverse approaches to the coverage
43
September 23, 2014
SEGMENT 4:
Brook Dutcher
Breach
response
with
coverage for
the actions of
the board,
including the
CIO
D & O
MPL
Breach
response
coverage
with 3rd
party
coverage for
the
performance
of services
Technology
E & O
1st and 3rd
party
coverages
Financial
Lines
Breach
response
products to
address
computer
crime and
fraud
Media
Cyber
insurance
coupled with
Media
related
coverage for
IP, Content
and related
services
Catastrophic
Large Limit
Breach
Response
Products

Why include cyber in my portfolio?
44
September 23, 2014
SEGMENT 4:
Brook Dutcher
Cost of doing business
Increase in direct and indirect costs
Costs of notification required,
Cost of defense, forensics, regulatory action
Cyber insurance addresses contemporary business exposures in a
unique fashion
Clearer boundaries are emerging and being defined between lines of
coverage
Coverage is becoming a necessity
The US accounts for more data incidents than any other country. Two
states in the US account for the majority of those incidents. The present
interpretation of market conditions indicate all businesses will have
some kind of incident.

Business Posture
45
September 23, 2014
SEGMENT 4:
Brook Dutcher
Most businesses have been reactionary to
cyber related incidents despite efforts to be
proactive.
Inherent flaws in the fundamentals of
programming have forced businesses to re-evaluate
prioritization of exposures and value.
Measurable effects to share value and the
security of C-Suite positions have forced
organizations to review business
methodology.

The Shift from Reactive to Proactive Posture
46
September 23, 2014
SEGMENT 4:
Brook Dutcher
Human Error
Global
Exchange of
Information
State
Sponsored
Activity
Political
Activism
Criminal
Enterprise
Quarrelsome
Clients
Constricting
Regulatory
Guidelines
• Emerging Case Law
• State and Federal AG
• Speculative Punitive Damages
• Monitization of IP and PII
• Sharing of information

A culture of accountability
47
September 23, 2014
SEGMENT 4:
Brook Dutcher
Data now shows companies with a strong security posture can reduce costs per record
significantly in the event of a breach
Companies are compelled to retain customers as organizations with a higher customer
turn over and churn rate were more likely to experience higher breach costs.
Costs of notification are significantly higher in the US causing a re-evaluation of costs to
conduct business in the US and the exposures of conducting business abroad.
US also experiences the highest costs associated with lost business in the event of a
breach inspiring businesses to adhere to higher standards

A culture of accountability
48
September 23, 2014
SEGMENT 4:
Brook Dutcher
Compliance Stability
Corporate
Culture of
Accountability
Written
Procedures
Continuity of Operations
Vetting of
Contractors
Incident
Response
Plan
Minimal Down Time
Proactive
Protocol for
Vulnerability
Management

Global Market Place
49
September 23, 2014
SEGMENT 4:
Brook Dutcher
Focus of coverage tends to vary from region to region. The issues revolving around
ownership of data and the responsibility of data continue to move to the forefront.
U.S. represents, by far, the
greatest number of
incidents, the largest
amounts of data per incident
and the greatest costs per
incident.
International groups are
collaborating on standards.
Japan to release new ISO
guidelines for Cloud Utility
The international legal
community is becoming
more fluent in notification
responsibilities from one
nation to another

Access to Solutions
50
September 23, 2014
SEGMENT 4:
Brook Dutcher
Pre-emptive
screening or
auditing
Experienced
breach coach
Access to forensic
service providers
Call centers at
your disposal
Experienced Claim
Handling
Forensic
accountants to
quantify
interruption costs
Public Relations
Firms to put out
media firestorms

A few parting words
51
September 23, 2014
SEGMENT 4:
Brook Dutcher
The market will continue to grow
and evolve
The exposure will continue to
grow and evolve.
For more information on HCC
Specialty visit:
http://www.hcc.com/specialty/

Introduction
Mr. Segrest is a wholesale broker for CRC Insurance Services, Inc. specializing in Professional Liability, Executive
Risk/Management Liability, and Network Security & Privacy Liability. He has played an instrumental role in his company’s
efforts to expand its presence and influence in the Cyber Security & Privacy Liability marketplace. He has lectured the
Alabama Independent Insurance Agents Association on this topic and he has helped lead CRC’s commitment to the growth
and development of Cyber Liability products for producers and their clientele. As demand for Cyber coverage increases,
CRC continues to provide complex risk solutions for insured’s realizing the magnitude of the exposure. Mr. Segrest
received his Masters of Business Administration Degree from the University of Alabama at Birmingham and his
undergraduate degree from Birmingham-Southern College.
52
September 23, 2014
SEGMENT 5:
Clay Segrest

Expanding Threats
• Increased sophistication of criminal cyber-attacks
• Insecure websites, databases and health information exchanges that are highly vulnerable to insider
and outsider threats.
• Employee increased use of personal unsecured mobile devices (smart phones, laptops, i-Pads) to
connect to company networks or enterprise systems
• Regulatory Compliance
• Cloud Services (40% of organizations use the cloud heavily) -- Common Applications & Services:
– Backup and storage
– Productivity
– File-sharing and collaboration
– Accounting and payroll data
– Medical records and billing
53
September 23, 2014
SEGMENT 5:
Clay Segrest

Defining Your Perimeter
54
September 23, 2014
SEGMENT 5:
Clay Segrest
Customers
Contracted
Business
Partners
Employees
Management

Claim Payouts by Type of Cost
145 Data Breach Claims -- 88 Claims Payouts -- $84M Payout (N=88)
55
September 23, 2014
SEGMENT 5:
Clay Segrest
50%
36%
13%
1%
Crisis Services
Legal Defense
Legal Settlement
PCI Fines and
Regulatory Fines
Smallest Claim Payout: $2,560
Largest Claim Payout: $20,000,000
Average Payout: $954,000

Crisis Service Costs
(N=66)
56
September 23, 2014
SEGMENT 5:
Clay Segrest
50%
36%
13%
1%
Crisis Services
Legal Defense
Legal Settlement
PCI Fines and
Regulatory Fines
50
42
33
53
60
50
40
30
20
10
0
Forensics Notification Credit Monitoring Legal Guidance

57
September 23, 2014
SEGMENT 5:
Clay Segrest
Legal Defense & Settlement Costs
(N=40)
50%
36%
13% 1%
Crisis Services
Legal Defense
Legal Settlement
36
29
10
40
35
30
25
20
15
10
5
0
Defense Settlement Both

58
September 23, 2014
SEGMENT 5:
Clay Segrest
16%
12%
1%
12%
27%
29%
2% 1%
Credit/Debit Card
Financial
N/A
Other
PHI
PII
Trade Secrets
Unknown
Percentage of Claims by Data Type
(N=140)

Percentage of Claims by Cause of Loss
59
September 23, 2014
SEGMENT 5:
Clay Segrest
(N=140)
19%
3%
21%
10%
8%
5%
8%
12%
4%
6%
4% Hacker
Improper data collection
Lost/stolen laptop or device
Malware/Virus
Other
Paper records
Rogue employee
Staff mistake
System glitch
Theft
Third-party vendor

60
September 23, 2014
SEGMENT 5:
Clay Segrest
Percentage of Claims by Business Sector
(N=140)
7%
3%
15%
29%
3%
13%
11%
3% 6%
8%
2%
Education
Entertainment
Financial Services
Healthcare
Hospitality
Non‐Profit
Other/Unknown
Professional Services
Retail
Technology
Telecommunications

61
September 23, 2014
SEGMENT 5:
Clay Segrest
Percentage of Claims by Revenue Size
(N=140)
22%
13%
23%
12%
1%
4%
25%
Nano‐Cap (< $50M)
Micro‐Cap ($50M‐$300M)
Small‐Cap ($300M‐$2B)
Mid‐Cap ($2B‐$10B)
Mega‐Cap (> $100B)
Large‐Cap ($10B‐$100B)
Unknown

Breaking the Buyer Barrier
Sales Challenges
• The Long Cyber Sale Cycle & producer endurance
• Realizing the magnitude of the exposure and the value of the products available
– Asking the right questions to the right people
– Connecting with the IT Department
• Product education & coverage expertise
– Value added services
• Financial Constraints
– Insurance Budget
62
September 23, 2014
SEGMENT 5:
Clay Segrest

Breaking the Buyer Barrier
Logistics of Obtaining Cyber Coverage
• Application Process -- providing a picture of the overall network perimeter
• Underwriting Community Concerns -- slowly requiring more information before finalizing terms &
conditions
• Underwriting Submission Information & Rating
– Class -- Type of business or service provided
– Revenue -- Revenues vs Record Count. What is a record?
– Amount of information at risk / Number and size of records / Nature of records
• Answering Cyber Questions
63
September 23, 2014
SEGMENT 5:
Clay Segrest

Cyber Progress
64
September 23, 2014
SEGMENT 5:
Clay Segrest
Discovering a Data Breach
Increased Awareness & Education
Securing Devices
Valued Partner & Trusted Business Advisor

Q&A:
► You may ask a question at anytime throughout the presentation today. Simply click on the question mark icon located on the floating tool bar on the bottom right side of your screen. Type
your question in the box that appears and click send.
► Questions will be answered in the order they are received.
65
September 23, 2014
SEGMENT 1:
Tom Finan
SEGMENT 2:
Helen A. Christakos
Security Group
SEGMENT 3:
Celeste M. King
Founding Partner
SEGMENT 4:
Brook Dutcher
SEGMENT 5:
Clay Segrest

66
September 23, 2014
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