Businesses with Apple and Cisco products may now pay less for cybersecurity insurance

Apple and Cisco announced this morning a new deal with insurer Allianz that will allow businesses with their technology products to receive better terms on their cyber insurance coverage, including lower deductibles – or even no deductibles, in some cases. Allianz said it made the decision to offer these better terms after evaluating the technical foundation of Apple and Cisco’s products, like Cisco’s Ransomware Defense and Apple’s iPhone, iPad and Mac.

Allianz found Apple and Cisco’s products offered businesses a “superior level of security,” Apple said in its own announcement about the new deal.

In particular, Cisco’s Ransomware Defense includes advanced email security, endpoint protection, and malicious internet site blocking which can protect an organization against malware, ransomware and other cyber threats.

Meanwhile, the integration of hardware, software and services on iOS devices helps to ensure that each component of the system is trusted, from booting up to installing third-party app, explained Apple.

“Users benefit from always-on hardware encryption, as well as support for secure networking protocols like Transport Layer Security (TLS) and VPN out of the box,” the company also noted.

The new cyber security insurance solution will involve Aon’s cyber security professionals assessing potential customers’ current cyber security situation and recommendations on how to improve their defenses. And participating organizations will have access to Cisco and Aon’s Incident Response teams in the event of a malware attack.

“The choice of technology providers plays a critical role in any company’s defense against cyber attacks. That’s why, from the beginning, Apple has built products from the ground up with security in mind, and one of the many reasons why businesses around the world are choosing our products to power their enterprise,” said Apple CEO Tim Cook, in a statement.

“iPhone, iPad and Mac are the best tools for work, offering the world’s best user experience and the strongest security. We’re thrilled that insurance industry leaders recognize that Apple products provide superior cyber protection, and that we have the opportunity to help make enhanced cyber insurance more accessible to our customers,” he added.

In an interview with Reuters, Aon’s chief exec Jason Hogg explained why this cyber security solution is different from others. Businesses today often address cyber security in a siloed fashion, he said, with technology staff, legal and other departments all playing separate roles.

This solution is instead a more “holistic approach” to cybersecurity and coverage, Hogg told Reuters.

Cybersecurity is no small issue for today’s businesses, given the large-scale hacks companies like Equifax and Target have faced. But addressing it properly could also come with high costs. According to Reuters, U.S. cybersecurity premiums were $1.35 billion in 2016, according to the National Association of Insurance Commissioners.

For Apple and Cisco, the new deal could help them attract more enterprise customers to their products, potentially helping them to beat competitors to scoring these larger clients.

“At Cisco, security is foundational to everything we do. As the leading enterprise security company, we know that in a digital world security must come first, and our integrated security architecture reduces customers’ overall risk of exposure to ransomware and malware attacks,” said Chuck Robbins, Chairman and CEO, Cisco, in a statement. “Cisco Security technology is central to the new holistic risk management solution and we are excited to bring another important benefit to our customers with greater options for cyber insurance.”