FLX.L Regulatory News (FLX)

Date: 2 March 2015On behalf of: Falanx Group Limited ("Falanx", "the Group" or "the Company")Embargoed until: 0700hrs

FALANX GROUP LIMITED

Cyber Insurance Joint Venture

Falanx Group Limited, an intelligence, security and cyber defence provider working with blue chip and government clients worldwide, is pleased to announce that it has entered into Heads of Terms with Principia Underwriting, ("Principia") to enter into a joint venture to develop a range of new insurance products in the cyber insurance space requiring the deployment of Falanx's Protective Monitoring and cyber risk and defence consulting services.

Principia is an insurance underwriting agency representing certain syndicates at Lloyd's of London and a trading division of Aquila Underwriting that serves over 300 blue chip customers.

The joint venture will make the Falanx Protective Monitoring Service a condition of Principia clients wishing to obtain cyber insurance cover. This will be the first application of a managed cyber security service into a cyber insurance product.

Falanx's Protective Monitoring software will remove risk for insurers and facilitate more effective pricing models by addressing the following concerns:

§ There is no current mechanism to positively filter insurance clients who wish to improve their Cyber risk management process;and

§ Insurance clients need to prove to the insurer reasonable skill and care in managing their cyber risk.

The service will provide the insured client the following benefits:

§ Reduced premiums if cyber networks maintained well

§ All records of events will be retained in an evidence ready vault, necessary for the fair and legal assessment of claims

The initial pilot service will be rolled out imminently to early adopter clients. Under the Heads of Terms it is anticipated that a full pilot service will be rolled out in September 2015 with full product delivery anticipated to commence in 2016.

John Blamire, CEO of Falanx Group, commented:

"As cyber threats become more complex, it is becoming increasingly challenging for insurers to provide cover without the client's proof of active cyber risk management. It is therefore vital that the insurance industry tackles the growing concern around systemic risk in the provision of cyber cover. We are proud to work with Principia and be the first movers in what we believe will be the future of cyber insurance cover."

Chris Newton, Managing Director of Principia Underwriting, commented:

"Insurers can no longer rely on the traditional 'single point in time' risk analysis undertaken when evaluating a prospective insured. Underwriting Cyber insurance requires a complete rethink given the dynamic nature of the security threats faced by all businesses, especially those that hold sensitive data, manage critical infrastructure or are supply chain dependent.

"We are delighted to be partnering with Falanx to offer a risk managed solution that integrates insurance coverage tailored for businesses with network security and privacy exposures."

Enquiries:

www.principia-underwriting.com

Notes to Editors:

About Falanx Group

§ Falanx Group Limited is a global intelligence, security and cyber defence provider working with blue chip and government clients.

§ The Group has three business divisions:

- Falanx Intelligence: Political & Security Risk and Business Intelligence services

- Falanx Resilience: Security Consultancy, Crisis Management and asset and facility security

- Falanx Cyber: Comprehensive cloud-based cyber security services

§ The Group listed on AIM in June 2013 under ticker FLX.

§ For more information: http://www.falanxgroup.com/

About Principia Underwriting

§ Principia Underwriting is an approved Lloyd's coverholder and is part of Aquila Underwriting LLP which is authorised and regulated by the Financial Conduct Authority (464137)

§ Principia offers technology and media liability, network security, privacy and unplanned downtime insurance policies to companies around the globe. 

§ Backed by 'A' rated Lloyd's syndicates, its aim is to provide a unique combination of coverage that reflects the evolving risks businesses face and to protect them against the threat of liability, lost income and expense costs that result.

For more information: http://www.principia-underwriting.com