$20 million cyber breach claim filed vs. Berkley Insurance with the NC, SEC
An unidentified Raleigh, NC resident filed a $20 million claim against Berkley Cyber Insurance Company today.
More details, including claim numbers, will be filed as soon as they are available.
They are public information.
Two complaints were also filed with the following:
N. Carolina (NC) Insurance Commissioner, and
SEC (Securities & Exchange Commission)
They ask the Commissioners to suspend the licenses of all 50 companies owned by W.R. Berkley Co. for:
failing to process claims in four days and
writing policies designed to avoid paying claims
According to the National Association of Insurance Commissioners (NAIC), Berkley's payout on claims is 39.4% of premiums collected.
This is the lowest of the top 20 cyber insurance companies.
Stockholders invest for profit.
Policyholders, however, want their insurer to investigate and pay claims.
According to the SEC (Security & Exchange Commission), Berkley Insurance has to report claims taking over four days to its shareholders.
https://www.sec.gov/files/rules/final/2023/33-11216.pdf
The SEC reported in the Federal Register that this regulation became effective Sept. 5th.
This is one day after a second claim was submitted to Berkley today.
https://www.govinfo.gov/content/pkg/FR-2023-08-04/pdf/2023-16194.pdf
The N. Carolina $20 million claim has gone unanswered for 21 days.
https://www.sec.gov/news/press-release/2023-139
A cyber breach was discovered on Aug. 17th in the Wake County offices.
Berkley did nothing about it.
A second claim was filed today with Gail Arkin.
She is the General Counsel of Berkley Cyber Insurance.
Arkin heads their legal department.
Gail is out of the office until Tuesday.
Gail Arkin, Sr. VP, Berkley Cyber Risk
From: Arkin, Gail <garkin@berkleycyberrisk.com>
Date: Wed, Sep 6, 2023, at 12:18 PM
Subject: Automatic reply: $20 million claim policy number BCRS1-3000188-02 (2nd filing of a claim) [EXTERNAL]
I am out of the office on vacation until Tuesday, 9/12. If your matter is urgent, please get in touch with Natalie Avena at Navena@berkleyselect.com or 312-800-6266.
The breach involved Social Security numbers and all Wake County residents' personally identifiable information (PII).
The last breach was up to 60 days ago.
The next one will be in 60 days, no later than Oct 8.
Every 60 days, the insured sends all its residents’ data to the:
Electronic Information Registration Center (ERIC) in Washington, D.C.
MIT Election Lab (Massachusetts Institute of Technology) in Boston
CrowdStrike, a software company, Ukraine
MIT’s Election Lab shares its information with 14 universities and three non-profits.
They are listed here:
https://electionlab.mit.edu/about
CrowdStrike and Berkley Cyber Insurance are partners.
According to CrowdStrike.
And Tracey Vispoli, President of Berkley Cyber Risk Solutions.
https://go.crowdstrike.com/berkleycyberoffer.html
The hardware in the breaches has been compromised.
Wake County uses Dell computers.
They are about to be destroyed.
Elections are stolen with Dell computers
Class action lawyers anticipate advertising their services to Wake County residents.
Their personal information has been compromised.
And their county officials and employees may have to reimburse Berkley for damages they pay in cyber claims.
Updated Sept. 9th