Forwarded From: Nicholas Charles Brawn <ncb05t_private> BW 4/22/98 4:59 PM Information Risk Group Joins Underwriters at Lloyd's -- London, UK -- to Announce Computer Security and Information Loss Insurance Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--April 22, 1998-- Rise in Computer Crime Creates Insurance Need to Cover Loss from Destruction or Disappearance of Electronic Data Including Loss from Business Interruption and Extortion Information Risk Group L.L.C. announced today that they joined forces with the Underwriters at Lloyds, and Lloyd Thompson, Ltd. (a London broker) in a new computer security insurance product, Computer Information and Data Security Insurance (CIDSI). CIDSI is the first insurance product that provides a full range of coverage for business information systems and information losses. Prior to the new CIDSI product, there has not been a specific product to cover organizations, other than banks, for financial losses sustained as the result of employee or intentional hacking. With computer crimes on the rise, CIDSI is an invaluable product for any company that has a computer information system. A recent survey of 250 businesses jointly conducted by the Computer Security Institute, Inc. in San Francisco and the FBI found that the dollar value losses resulting >from computer crimes (including internal and external hacks) totaled $137 million last year, compared with about $100 million in 1996, a rise of 37%. Users also reported that the average losses from theft of proprietary company information leaped 68%, from approximately $955,000 in 1996 to about $1.68 million last year. "With computer crimes growing at such an alarming rate, we are very pleased to be able to team up with Lloyds underwriters to provide this new CIDSI product to our clients," said John J. Posey, president of Information Risk Group, L.L.C. "Together we are able to combine the Underwriters of Lloyds innovative insurance product with our effective risk reduction services which will help prevent hackers or extortionists from succeeding in their malicious acts. Information Risk Group will provide loss services to CIDSI policy holders by first assessing the policy holder's information system and secondly by providing an immediate response to incidents and losses covered in their policy" The Underwriters at Lloyd's CIDSI product offers coverage up to a limit of $50 million in combination with Information Risk Group's embedded computer security and information risk services to prevent and mitigate losses from hacking, extortion, sabotage, and theft involving computer systems and data. The embedded services follow a general model of services that are similar to Kidnap and Ransom Insurance coverages. The CIDSI coverage responds to loss due to: -- Fraudulent and malicious acts of employees or third parties -- Loss of computer systems and programs -- Loss of electronic data and media -- Computer virus attacks -- Extortion against information systems -- Business interruption "The new CIDSI product covers a large gap that is left with traditional insurance policies," said Simon Milner, of London insurance broker Lloyd Thompson Ltd. "Other existing products exclude loss from acts of employees, directors, trustees or representatives. The new CIDSI product not only covers these losses but helps put systems in place to prevent them from happening in the first place." "Information technology is a new arena for our risk management program," said Reginald G. Schindler, director of risk management at Oregon Health Sciences University. "We feel fortunate that we were able to bring the security experts from Information Risk Group into our organization. They enabled us to add a high level of experience and expertise to our risk management and information technology initiatives. We have a team approach to risk management and we view Information Risk Group as a valuable member." The CIDSI product and services were developed in a joint effort of SVB Syndicates, Ltd., the leading Lloyd's underwriter for the CIDSI product, Lloyd Thompson Ltd., of the Jardine Lloyd Thompson Group, Information Risk Group, L.L.C., Oregon Health Sciences University (OHSU), Corporate Security Services, Inc., and Asset Management Technologies, Inc. For more information visit the Information Risk Group web site at www.inforiskgroup.com. Information Risk Group Background Information Risk Group, L.L.C. specializes in information loss and computer security services for businesses, law firms and governmental agencies. The firm's headquarters is located in the Portland Oregon metropolitan area with branch offices in Raleigh NC, Atlanta GA, Tucson AZ, and San Jose CA and an affiliate branch office in London, UK. Information Risk Group's operations are executed through its core business partners Corporate Security Services Inc. and Asset Management Solutions Inc. CONTACT: Information Risk Group, L.L.C. John J. Posey, 888/828-4474 -o- Subscribe: mail majordomot_private with "subscribe isn". Today's ISN Sponsor: Dimensional Communications (www.dim.com)
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