February 13, 2020 | Industry Insights, Insights | Jason Palumbo
Cyber Risks and Supply Chain with Roanoke’s Glenn Patton
Live from AirCargo 2020, Roanoke Insurance Group’s Glenn Patton was featured on the FreightWaves INSIDERS podcast. In his conversation with supply chain expert Timothy Dooner of FreightWaves, Patton provides ways the transportation and logistics industry can be aware of the growing supply chain (including cyber) risks and stay competitive and relevant in these turbulent times. From high-end French chocolates, to truckloads of tablets, to even having to turn down the chance to insure the Declaration of Independence, Glenn Patton, VP of Business Development, shares his career’s worth of insurance and trade risk expertise with the podcast audience in this entertaining and educational interview. Glenn and Tim even discuss how Lloyd’s of London valued the insurance on NFL player Troy Polamalu’s hair! View the full interview below, or read on for more details.
Premier among today’s supply chain risk concerns is the ever-growing threat of cyber crimes. Patton explained, “The (logistics) industry itself has reached the top 5% as the targets. Everything is done electronically now.” From issues as seemingly innocuous as fake invoices to nuclear-level cyber crimes of stealing data and ransomware, as the transportation and logistics field grows, so do cyber risks.
While data and cyber crimes are now the biggest industry concern, traditional physical losses remain an ever present threat, and education remains the best way to mitigate the risk of loss. Besides assessing and insuring cyber risks, Roanoke proactively conducts webinars centered on supply chain risk and provides our online learning platform Knowledgeport to educate customers about current industry best practices as well as the fundamentals of cargo insurance, ATA Carnet, and customs bonds.
In addition to supplying coverage for traditional freight and cargo, as part of the Lloyd’s of London syndicate, Roanoke Insurance Group has insured valuable and interesting commodities from around the world, including the ballots from the Iraqi election to music tour equipment for superstar bands like the Rolling Stones. Tours frequently cross international borders, and Roanoke is at the forefront of supplying ATA Carnets to facilitate the passage of equipment through customs and avoid the cost of duties and tariffs.
While piracy remains a tremendous threat to freight and cargo on the move, sometimes that cargo is digital. As Patton cited, data breaches and ransom demands from cyber criminals can be more costly than actual loss to cargo. Cyber insurance policies are constantly evolving and since so much of the illicit activity takes place on the dark web, one of the highest costs in a claim is the cost of an investigation. “If it’s a full data breach, you’ve got all the government regulations,” Patton said. “You have to notify every person that was potentially hacked or not hacked that their information is out there.”
Patton stresses that anyone can sell insurance, but specialist brokers like Roanoke are more in tune with industry needs, keeping up with government regulations and evolving supply chain risks and educating customers on those issues. The company’s proactive approach considers the ways the future transportation and logistics industry will need to protect cargo, including concerns as far out as a space division for satellites and space stations.
For more information on insurance for the logistics industry or to assess your company’s cyber risk with a few simple questions, please contact us at 1-800-ROANOKE or reach out directly to your local Roanoke office to find out how we can provide you with the insurance programs you need to be properly protected.
Watch the full interview at FreightWaves Insiders or on Apple Podcasts, Spotify, or YouTube.