HITRUST, a Texas-based leader in information security assurances for risk and compliance management, has officially announced the launch of an innovative cyber insurance consortium in collaboration with Lloyd’s of London, backed by a network of globally recognized AA-rated insurers.
According to certain reports, the stated first-of-its-kind shared risk facility arrives on the scene with an ability to revolutionize cyber insurance landscape and deliver exclusive, market-leading coverage, as well as rates for HITRUST-certified organizations worldwide. More on the same would reveal how it aligns relevant and reliable cybersecurity practices with tailored insurance solutions to set a whole new standard for incentivizing and protecting trusted organizations.
To understand the significance of such a development, we must take into account how, if we go by the recently published 2024 Trust Report, less than 1% of HITRUST-certifications experienced a breach over the past two years. This reveals the industry-leading effectiveness of HITRUST assurance program in regards delivering measurable risk mitigation outcomes.
Anyway, another detail worth a mention here is how the newly formed consortium with Lloyd’s of London unites more capital from a global network of Moody’s recognized AA-rated insurers to establish an innovative shared risk facility. Such an effort, on its part, leverages the proven link between HITRUST certification and superior and measurable risk management. This it does to help insurers confidently deliver enhanced and more consistent insurance products.
Not just that, the stated facility is also designed to scale as more insurers join, thus ensuring greater capacity to meet the evolving demands of HITRUST-certified organizations across the globe.
“The creation of this consortium validates the effectiveness of the HITRUST methodology in reducing cyber risk and enabling consistency and transparency measuring residual risk,” said Blake Sutherland, Executive Vice President of Sales and Business Development at HITRUST. “By recognizing the rigorous and measurable security practices of organizations with HITRUST-certifications, this facility enables insurers to confidently offer enhanced coverage options with more competitive rates, creating a win-win scenario for both businesses and insurers.”
Taking a more feature-specific view of the new consortium, we begin from its promise to cut down on insurance costs. You see, users who choose to rely upon HITRUST’s latest brainchild can come expecting exclusive market-leading rates with more favorable terms and significant savings that reflect an organization’s commitment to strong cybersecurity practices, including a starting credit of 25% on premiums.
Next up, we have the potential for a simplified insurance process. In essence, the idea here is to eliminate redundant questionnaires and lengthy application cycles with streamlined underwriting based on data from the HITRUST certification; some policies being underwritten in just one week.
Moving on the availability of comprehensive coverage, it is reflected in the way policies are built on a single-page exclusion model to offer clarity and adaptability, while simultaneously supporting a wide range of organizational needs. Alongside that, you can also access scalable protection. This includes enjoying enhanced capacity as the consortium grows, helping coverage remain adaptable to an organization’s needs as they change and grow over time.
Rounding up highlights would be consortium’s recognition for security investments. To expand upon that, it will effectively demonstrate to partners, clients, and regulators that your organization meets the highest standards of cybersecurity, validated by the industry’s most trusted risk management framework.
Among other things, we must also mention that, in order to enable its new consortium, HITRUST has developed a secure API which will insurers to access detailed information about an organization’s HITRUST r2 certification through the company’s Results Distribution System (RDS). This setup, like you can guess, treads up a long distance to let insurers receive structured, consistent assessment data, facilitating a more accurate and efficient underwriting process.
“By integrating HITRUST certification into our underwriting process, we’re able to offer tailored cyber insurance solutions that not only recognize but also reward organizations for their commitment to stringent security standards,” said Josh Ladeau, CEO of Trium Cyber, the underwriting lead for the initiative. “This collaboration marks a pivotal step in aligning cybersecurity excellence with comprehensive insurance coverage.”