Slice Labs Inc. and AXA XL, a division of AXA, have launched a new cyber insurance policy that, they said, was specifically designed for small and midsize businesses (“SMBs”).

The policy is powered by Slice's insurance cloud services (“ICS”) platform.

“Businesses of every size are vulnerable to cyber risk,” said John Coletti, chief underwriting officer of AXA XL's North America cyber and technology insurance business. “In providing this on-demand, AI-powered cyber insurance product, we are expanding our reach in the cyber insurance market and leveling the playing field for SMBs, giving them access to broad cyber insurance protection that the largest of companies rely on as well as cyber security resources to help them protect their revenue, profitability, and customer relationships.”

“This type of cyber insurance product is the first of its kind,” said Tim Attia, the chief executive officer of Slice. “In the last month, we've been reminded of the massive impact a breach can have on global technology and airline businesses that have the resources to recover. If any of their SMB partners were also impacted in the attack, they wouldn't survive. This product, which is possible due to the ICS platform, works to provide an extra layer of resources and protection to businesses who are equally as vulnerable to a breach, but much less likely to recover.”

AXA XL said that its cyber insurance product was designed for companies under $20 million in annual revenue and offered limits from $250,000 up to $3 million. AXA XL added that, utilizing Slice's E&S brokerage license, the digital platform “provides comprehensive coverage that can easily be purchased in a matter of minutes for qualifying SMBs.”

According to AXA AL, the policy includes coverage for data protection and privacy risks, both for third-party claims and first-party mitigation costs. AXA XL pointed out that these often are associated with a cyber incident, such expenses for notification, credit monitoring, data recovery, reputation management, loss of business, and extra expense. The coverage also provides protection for cyber extortion threats and other breach-related liabilities including regulatory penalties, GDPR, and merchant services agreements.

In addition, the AXA XL cyber insurance solution is delivered with data to help SMBs understand their cyber risk exposure and learn how to strengthen their cyber defenses. Customers are provided an individualized dashboard with an overall cyber risk assessment and scores along with benchmark scores of their industry peers across each risk category.

“Our partnership with Slice is a great example of the leverage we can get from collaborating with insuretechs,” said Lauren Tennant Pollock, partner and digital distribution lead for Accelerate, an internal innovation team within AXA XL. “Given Slice's technology and our underwriting, pricing, and claims expertise, we have built a digital end-to-end cyber offering for SMBs in just three months. We are very excited to see the product evolve as we collect customer feedback and continually enhance our product with their preferences, and changing cyber and technology risks, in mind.”