HSB, a unit of Munich Re, has introduced a new cyber insurance solution named Cyber for Auto to protect personal data stored in connected vehicles.
The coverage is designed to safeguard private information linked to cloud-based and wireless communication networks in personal cars and trucks.
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Connected technology in vehicles, such as sensors and computers, poses a risk of cyberattacks.
With the integration of smartphones, drivers may expose their personal data to potential cyber threats, including online extortion and identity theft.
HSB’s Cyber for Auto aims to address these vulnerabilities by covering attacks on personal data within a vehicle.
A recent survey by HSB revealed that 72% of consumers have synced their phones with their vehicles, and 60% store personal information in their vehicle computer systems.
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By GlobalDataThe concern for personal data security is significant, with 36% of respondents being very concerned and 28% extremely concerned about information compromise.
This concern escalates to 79% among plug-in electric vehicle owners.
This cybersecurity offering for automobile insurance is still pending approval from US state insurance departments.
The core coverages of HSB’s Cyber for Auto would include protection against cyberattacks such as malware, viruses and ransomware demands.
It would also offer identity recovery coverage and services that extend beyond the vehicle, applying to any instance where personal identifying information is compromised.
Additional benefits would cover expenses for towing, labour and temporary transportation while affected auto systems are being restored.
HSB plans to offer Cyber for Auto through endorsements to the policies of insurance companies that partner with HSB.
HSB treaty division chief product and risk officer James Hajjar said: “Automakers continue to integrate new technologies into today’s vehicles. With each added system or connection, there are new vulnerabilities that hackers and other cybercriminals can exploit. Cyber for Auto helps insurers and their customers stay ahead of these new cyber exposures.”
In other recent developments in the cyber insurance space, Hannover Re announced its intention to establish a specialty reinsurance business unit by combining its global operations that focus on cyber and digital risks.
