Coalition introducing active cyber policy in U.S.

NEW YORK — Coalition Inc. Tuesday said its new active cyber policy will be available on a surplus lines basis in the U.S.

Limits available for the coverage are $15 million, said Shawn Ram, Coalition’s chief revenue officer, speaking Tuesday at the insurer’s inaugural Activate conference.

The coverage is designed to “incentivize” policyholders to adopt active risk management and security awareness by allowing for reductions in an insured’s retention for each claim-free year, Mr. Ram said, ultimately down to zero.

Insureds can also see their retention for funds transfer fraud reduced if they report incidents within 72 hours of the initial fraudulent transfer. Chances for financial recovery of such fraudulent transfers increase within such a shorter reporting period, Mr. Ram said.

“What we wanted to do was connect the company’s practices from a security perspective in order to provide them tangible benefits from a coverage standpoint,” Mr. Ram said.

Policyholders can use Coalition Control, the insurer’s online security portal, to help identify exposures and deploy fixes, earning them credit toward policy features, including reduced retentions.

The policy also provides expanded affirmative artificial intelligence coverage now including protection against deepfake-enabled funds transfer fraud and AI-caused security failures.