Travelers Exec on Technology Risk Transfer

- James Standish holds the position of vice president and national practice leader for technology and life sciences at Travelers. - According to the 2024 Travelers Risk Index, 29% of technology companies lack necessary insurance coverage despite 84% acknowledging the critical importance of proper cybersecurity controls. - A key strategy advocated by Standish is the bundling of technology errors and omissions (tech E&O), cyber, and general liability coverages with a single insurance carrier to prevent potential gaps in protection. - Travelers' Q4 2024 Cyber Threat Report indicated a significant increase in ransomware attacks, with a notable trend of targeting IT services and consulting firms to exploit their connections to multiple clients. - Mergers and acquisitions introduce substantial risk, as the integration of disparate cybersecurity protocols, quality standards, and corporate cultures can create significant vulnerabilities. - Emerging threats that businesses now face include the potential for data poisoning of AI models, the use of deepfakes for brand impersonation and identity fraud, and new vulnerabilities associated with the expansion of 5G networks. - Travelers offers specialized "CyberRisk Tech" policies that can cover costs for forensic investigations, litigation, business interruption, and even system "Betterment" to prevent similar future breaches. - Beyond traditional decision-makers, insurance professionals now need to engage with roles like the chief security officer (CSO) or chief information security officer (CISO), who have growing influence over insurance decisions in technology firms.