Coalition, a provider of Active Insurance, has launched a new surplus lines cyber insurance product to protect businesses against digital risks in the US.
The new policy, dubbed Coalition Active Cyber Policy, introduces data-driven coverage enhancements to protect businesses in the evolving digital risk environment.
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According to Coalition, the policy offers expanded protections tailored to modern digital threats and specific benefits for policyholders that actively engage in cyber risk management.
The policy is structured to reduce retention costs to zero for each year for policyholders that demonstrate proactive risk management, the company added.
It includes provisions for early reporting of funds transfer fraud (FTF), offering reduced retentions for clients that report FTF incidents within a 72-hour window.
The policy also extends coverage to include AI-related security events such as deepfake-enabled FTF and security failures caused by AI.
The policy also features Any One Claim Coverage, which allows the full policy limit to reset for each incident within the policy period.
Coalition has consolidated 11 coverages that were previously offered as endorsements into the base policy’s insuring agreements.
The new policy is available to organisations with annual revenues up to $5bn, and offers limits of up to $15m.
Coalition chief revenue officer Shawn Ram said: “With the launch of the Active Cyber Policy, Coalition is setting the standard for market-leading coverage that includes expanded protection against emerging digital threats and specific advantages for security-conscious policyholders.
“Active Insurance is built on the predication that proactive security measures significantly reduce the frequency and severity of claims – in fact, our data proves it. And now, brokers can offer improved policy terms that enhance coverage to clients who actively participate in their cyber risk management.”
Last month, Coalition secured a $30m (Y4.39bn) equity investment from Mitsui Sumitomo Insurance, a subsidiary of MS&AD Insurance Group.
This investment strengthens their existing relationship, which includes a multi-year capacity agreement in Australia and a joint initiative to provide cybersecurity solutions to small and medium-sized enterprises in Japan.
