CFC has expanded its Cyber Proactive Response (CPR) coverage to include sector-specific insurance policies for digital health, fintech, and technology clients. This update replaces previous cyber policy terms with CPR wording, effective immediately.
Tim Boyce, deputy chief underwriting officer at CFC, stated that these industries face heightened cyber risks due to the sensitive nature of the data they handle. “Technology companies hold some of the world’s largest data sets, fintech firms handle millions of dollars in transactions every minute, and digital health providers store highly sensitive personal health information,” he explained.
Enhanced Cyber Protection Features
The updated cyber policies provide several key features, including:
- Built-in cyberattack prevention services
- Specific provisions for AI-related incidents
- Protection against revenue loss from missed business opportunities
- Reimbursement for emergency operational expenses following a cyber event
Boyce emphasized the importance of swift action during a cyber incident. “A cyber incident in any of these sectors could result in significant privacy breaches, immediate financial losses, reputational damage, and in the case of digital health, even risk to human life,” he warned.
Industry Concerns and Trends
The timing of CFC’s CPR expansion coincides with growing concerns about IT system outages in the financial and insurance sectors. According to New Relic’s 2024 State of Observability report, the average cost of outages has reached $2.2 million per hour. The report also found that 48% of respondents in financial and insurance firms experienced at least one major service disruption weekly.
AI is playing a crucial role in shaping digital oversight strategies. Forty-one percent of surveyed organizations have implemented AI tools to reduce downtime. The study also showed increasing adoption of cloud-based development, with 36% using cloud-native frameworks and 28% implementing containerized environments.
Cybercrime in the Healthcare Sector
CFC’s 2025 Digital Healthcare Report highlighted the growing cyber exposure in the digital health market, particularly in the US, UK, Europe, and Australia. The report noted a 40% increase in US market inquiries and a 92% rise in Australia between 2022 and 2024, driven by demand for digital care and chronic condition management.
In 2024, healthcare organizations reported 677 data breaches affecting over 182 million people, with the average cost per breach reaching nearly $11 million – almost double the financial sector average.
The updated CPR coverage aims to address the unique vulnerabilities of digital health, fintech, and tech companies, providing them with comprehensive cyber protection and proactive threat mitigation.
