ACORD, the global standards-setting body for the insurance industry, has announced the launch of the ACORD Cyber Data Breach Standard, the insurance industry’s first official standard for cyber data breaches. The ACORD data standard was developed in collaboration with Aon and Beazley. ACORD announced in a statement that Aon and Beazley collaborated to contribute cyber-related insights. Collectively, they focused on data breach, examining common challenges with different practices for sharing information in risk assessment and policy workflow. ACORD then synthesized this information to create the draft standard.
As the risk of cyber-related losses increases there has been a greater demand for cyber coverage. According to the ACORD/NAIC Cyber Insurance Survey, nearly 60% of insurers consider that the lack of uniform data standards has prevented the growth of cyber insurance.
The ACORD data standard aims to facilitate rapid and accurate data exchange among insurance industry stakeholders, including carriers, agents, brokers and software providers. The ACORD data standard also aims to increase operational efficiency and effectiveness for cyber risk stakeholders as well as establish a baseline for compliance and any audit-related activities. According to the President of U.S. Cyber Solutions at Aon, Christian Hoffman, “this question set will help organizations approach cyber risk in a united manner". The standard will also help improve connectivity and collaboration across organisations, including information security and risk management.
The ACORD data standard is being made available immediately to ACORD members for their review and comment, after which it will be incorporated into the next release of the ACORD Property & Casualty Standards.