Insurer Aon to acquire cybersecurity firm, Stroz Friedberg
Insurance broker Aon is to acquire cybersecurity firm, Stroz Friedberg, which previously worked with Yahoo and Sony after they were attacked. The companies will work together on assessing clients' risk, selling them tools to guard against attacks, and on insurance in the event of an attack happening. Stroz Friedberg CEO Michael Patsalos-Fox said: "Three years ago, you could barely get a company to buy proactive services. Now, clients are more aware of the risks of improperly guarding against cyber threats."

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Aon, one of the world's largest insurance brokers, will acquire Stroz Friedberg, the cybersecurity firm that worked with Yahoo, Sony and others after they were hacked.

The Chicago-founded insurance giant and the New York-based security firm together would assess clients' risk and sell them tools to protect against attacks, as well as insurance in case an attack does occur. They could help a credit card provider, for example, detect weaknesses and give them access to capital if they have to reissue cards.

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The companies announced the deal Tuesday but did not disclose terms. It is expected to close within 30 days.

Cybersecurity is a hot topic among presidential candidates and business executives as high-profile hacks continue to capture Americans' attention.

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The threat has evolved into a business opportunity for insurance brokers.

American businesses reportedly spent more than $2 billion on cyber insurance in 2015, according to the Insurance Information Institute, a New York-based nonprofit insurance information group. It projected that to increase to $7.5 billion by 2020.

Increased awareness has helped firms sell insurance and security tools to businesses desperate to stave off an attack, said Stroz Friedberg CEO Michael Patsalos-Fox.

"Three years ago, you could barely get a company to buy proactive services," he said. Now, clients are more aware of the risks of improperly guarding against cyber threats.

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Stroz Friedberg's more than 550 employes will become part of Aon's Cyber Solutions Group.

John Bruno, executive vice president of enterprise innovation and chief information officer at Aon (NYSE: AON), said it is important for his company to price insurance products well and to decrease the risk insurers take on. He said Aon is acquiring Stroz Friedberg to offer clients more comprehensive solutions.

"If we don't … make clients prepare and respond better to cyber, then the cost of cyber cover will always be more expensive than it needs to be," he said.

John Gunn, a security expert at Oak Brook Terrace-based Vasco Data Security, said the companies together can better protect clients by identifying vulnerabilities and risk, then using that information to set prices. And when they find vulnerabilities, they can sell clients products to fix them.

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In the long term, Gunn said, this model could make companies more secure, since insurers may require them to find and address problems before selling them coverage. Pressure from insurers could be more compelling than government regulations, which Gunn described as "loose" when it comes to companies assessing their own vulnerabilities,

"I think it's a brilliant move," Gunn said. "My lender wouldn't lend me money for my house unless I have fire insurance."

aelahi@tribpub.com

Twitter @aminamania