COMMERCIAL
Cyber Insurance
To effectively leverage this growing line of business, Carriers and Brokers are adopting new models and ways of thinking to protect margins and improve loss ratios.
The Rise of Cyber Claims
Urgent Need for Change
The increasing sophistication of cyber threats, frequency of attacks and stringent regulatory requirements have created a shifting landscape for the Insurance Industry. The cost of claims and forensics post-breach are not sustainable as denials increase and premiums rise to compensate.
NYDFS Recommended Cyber Insurance Risk Framework
“Insurers must account for the systemic risk that occurs when a widespread cyber incident damages many insureds at the same time, potentially swamping insurers with massive losses.
Insurers that don’t effectively measure the risk of their insureds also risk insuring organizations that use cyber insurance as a substitute for improving cybersecurity, and pass the cost of cyber incidents on to the insurer“
Insurance Circular Letter No. 2, 2021
Provide Solutions & Education
Cyber Insurers have an important role to play in educating their insureds and offer more comprehensive information about the value of cybersecurity measures and facilitate their adoption.
Establish Compliance-Based Pricing
Insurers should also incentivize the adoption of better cybersecurity measures by pricing policies based on the effectiveness of each insured’s cybersecurity program.
Reduce Premiums
By identifying and pricing risk created by gaps in cybersecurity, cyber insurance can create a financial incentive to fill those gaps to reduce premiums.
Ensure Insureds' Clients Trust
By driving improved cybersecurity and cyber risk management, cyber insurance can also benefit consumers who entrust their sensitive data to these organizations.
Improve the Cyber Insurance Ecosystem
To reduce total claim payouts and improve loss ratios
For growth of a sustainable and sound cyber insurance market
New Key Roles
Commercial Insurance Brokers
Promote & Facilitate Pre-Application Cyber Protection & Compliance to Insureds
Cyber Insurers & Reinsurers
Tighten up Pre & Post-Breach Cyber Ecosystem Relationships & Processes
The Industry has always formulated the right model, cyber is no different
Leverage Proven Industry Models
If a car or house has a stronger security package, Insurance rates are often lower... Commercial Cyber Insurance is similar, if a firm has the right security in place and breaches don’t happen, rates could eventually go lower.
Pre & Post Breach Risk Management
Having better pre breach preparedness improves post breach ability to reduce claim scope, timing, and costs
Pre-Breach
Protection & compliance
- Security Risk Assessments
- Cyber Program Management
- Safeguards & Controls
- MFA, Logs, etc.
Synchronized Pre-to-Post Breach Model
Post-Breach
eDISCOVERY & forensics
- Leverage Pre-Breach Automation
- Review Logs & Evidence
- eDiscovery & Forensics
- Prepare Post-Mortem Report
BIGGEST RISK TO GLOBAL BUSINESS, 2022
Cyber Incidents
A New Model to Improve Loss Ratios
How to avoid premiums and renewal denials increase
Carriers, Brokers, Legal Firms, and Post Breach Firms
Contact us to discuss how we can help implementing new models to ensure viable cyber insurance business for all
