Family coverage must go beyond bricks and mortar

Families face new and evolving threats, from online harassment to child abduction – and the insurance industry must strive to keep up says carrier head

Cyber

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Families face new and evolving threats, from online harassment to child abduction – and the insurance industry must strive to keep up, says carrier head. Paul Johnstone, senior vice president of Chubb Personal Risk Services Canada, says traditional insurance coverages don’t take into account modern threats posed by technology.

 “Unfortunately in today’s world, we’ve all heard first-hand or second-hand, or at bare minimum through the media, of incidences where people have unfortunately been negatively impacted by others misusing technology to cause harm or loss,” he says. “Traditional insurance coverages don’t really contemplate that – a traditional policy is about bricks and mortar and liability – so these new evolving realities require a new innovative cover.”

It’s a gap Chubb is looking to cover through the addition of a first-of-its-kind cyber bullying coverage to its family protection suite, a global $110-annual premium product that covers a multitude of threats such as home invasion, stalking, and carjacking.

Johnstone says that while anyone who uses an online platform is exposed to risk, cyber threats pose a particular concern for children and teens. “When you don’t have the experience or wisdom, or be as cautious with something as powerful as technology, certainly with children or youth, you would think there’s a heightened exposure that would make you want to consider this cover,” he says.

It’s a topic brokers are wise to broach with their clients to ensure they don’t experience unexpected loss from evolving threats. “I think it really gives them an amazing opportunity to really connect with the insured, talk about some things that matter in a really progressive way, and add tremendous value,” says Johnstone. “This really allows them to talk to the insured, and really tailor their coverage to provide a robust set of coverages that deal with the realities of today’s world.”

Victims of cyber bullying often face stigma, as reporting on shared information and images can contribute to resulting mental and financial anguish. However, Johnstone says coverage provides a judgement-free way to ensure families have the resources they need.

“We’re not the judge and jury on online or technology-based behavior, this is simply to protect an insured and take care of an insured if an unfortunate event happens to them from the outside in – this is about people outside the family causing harm or loss to people inside the family,” he says. “We’re not dictating what type of exchange of information, or what platform.”


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