Google Cloud, Allianz and Munich Re team up for cyber insurance
Google Cloud, Allianz Global Corporate & Specialty (AGCS) and Munich Re announced the Risk Protection Program, “a first-of-its-kind collaboration between a major cloud provider and leading cyber insurance companies.” The Risk Protection Program is designed to help customers reduce cloud security risk and potentially reduce costs through a specialized and enhanced cyber insurance product with pricing directly linked to a “strong security posture.”
Building on Google Cloud’s engineered-in security toolset, the Risk Protection Program consists of two parts. First, a new diagnostic tool called Risk Manager, which enables Google Cloud customers to measure and manage their risk on Google Cloud and obtain a report on their security posture on the platform. Second, AGCS and Munich Re have developed Cloud Protection +, a comprehensive cyber insurance product built with key feedback from Google Cloud to provide enhanced and specialized coverage available exclusively for Google Cloud customers. Using the Risk Manager tool, customers seeking cyber insurance coverage can send reports to AGCS and Munich Re, who in turn will leverage the reports with brokers to assess a customer’s security posture and determine eligibility for Cloud Protection +. AGCS and Munich Re have streamlined their underwriting process based on improved data provided by the Risk Manager tool and created the Cloud Protection + policy, which provides enhanced coverage to Google Cloud customers.
In 2020, Google Cloud generated ~$13 billion in revenue, up from ~$8.9 billion in 2019. In Alphabet’s Q4 2020 earnings calls, CFO of Alphabet and Google said that the company is “investing aggressively” in Google Cloud and some of these investments include tripling the size of its sales workforce and expanding the partner channel. According to estimates from research firm Canalys, in the third quarter of 2020 Google Cloud accounted for 7% of global spending on cloud services, while Microsoft and Amazon Web Services were on the receiving end of 19% and 32%, respectively.
“The benefits of adopting cloud technologies are too compelling for today’s enterprises and we are committed to removing the barriers that prevent this business acceleration. That’s why we are proud to be delivering a first-of-its-kind program with Allianz and Munich Re to help our customers reduce security risks and gain simplified access to specialized cyber insurance coverage to help customers accelerate their business with confidence in the cloud.” – Thomas Kurian, CEO of Google Cloud.
“Bringing the Risk Protection Program to market is possible due to our strong partnership with leading cyber insurers, Allianz and Munich Re, who collaborated with us to develop this groundbreaking program that we hope will improve cyber security and cyber insurance for our customers. We believe the program provides our Google Cloud customers with both access to superior cyber protection, as well as a more efficient insurance procurement process.” – Juan Rajlin, Treasurer of Alphabet and Google.
“The demand for cyber insurance continues to grow as our customers become increasingly exposed to evolving cyber threats – which are again one of the top business risks globally in this year’s Allianz Risk Barometer. Our clients’ risks are shifting as data and services become increasingly cloud-based and we are keen to remain at the forefront of understanding these new risks to better service our insureds. Through this innovative program, we are bringing together technology, security and insurance to give our customers the cover that they need and to help to create a sustainable market for cyber risks.” – Chris Townsend, Member of the Allianz SE Board of Management.
“Through this unique cooperation and with our innovative product Cloud Protection +, we are addressing the specific risk management needs of Google Cloud customers. The enhanced data from the Risk Manager tool allows customers to benefit from a more efficient and transparent underwriting process and access best in class cyber coverage. At the same time this cooperation will contribute to Munich Re’s continued data-based enhancement to our cyber risk modelling, enabling us to offer sustainable solutions that better protect clients into the future.” – Stefan Golling, Member of the Board of Management at Munich Re.
Starting today, the Risk Manager tool is available to Google Cloud customers by request and will be prioritized for Security Command Center Premium customers in the United States.