AT&T Inc. (T – Free Report) and its new subsidiary, AT&T Insurance Agency, LLC, have partnered with Lockton Affinity and CNA Financial Corp. (CNA – Free Report) to make cyber insurance policies available to small and mid-sized enterprises. CNA is one of the largest U.S. commercial property and casualty insurance companies.
The strategic move gives AT&T Business customers access to a full range of cyber risk management solutions, which will help them holistically mitigate and transfer cyber risks. With this, customers of AT&T Managed Cybersecurity Solutions will have access to policies that are underwritten by CNA, with Lockton Affinity serving as the insurance broker.
Notably, AT&T Managed Cybersecurity Solutions provide superior cyber protection, which is recognized by insurance industry leaders. The company is offering customers a combination of cybersecurity technologies and access to broad cyber insurance through CNA. The policy — CNA Epack Extra — may cover from $250,000 up to $10 million of qualifying expenses.
AT&T aims to capitalize on business opportunities with such customized service offerings so that the standard ‘one size fits all’ is not applicable to small and mid-sized organizations due to the fact that gross turnover of different businesses varies significantly. Moreover, there is a huge scope to generate higher revenues as the industry is highly underserved as only 3% have coverage and lack access to affordable response and recovery solutions.
Also, recovering from cyberattacks disrupt business continuity, and small and mid-sized businesses lack necessary resources needed to recover. AT&T seeks to help these enterprises mitigate the evolving cyber risks and respond to emergencies accordingly.
Furthermore, AT&T Cybersecurity Solutions provide more than 20 managed security services to AT&T customers, including AT&T Cloud Web Security Service, AT&T Secure Email Gateway and AT&T Distributed Denial of Service Defense.
In the past three months, shares of AT&T have gained 3.2% compared with 7.1% growth recorded by the industry.
AT&T currently has a Zacks Rank #3 (Hold). Better-ranked stock in the industry include United States Cellular Corp. (USM – Free Report) and Cogent Communications Holdings, Inc. (CCOI – Free Report) , both sporting a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular has a long-term earnings growth expectation of 1%. It beat earnings estimates in each of the trailing four quarters, delivering an average positive surprise of 340.4%.
Cogent Communications has a long-term earnings growth expectation of 10%.
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