A recent survey by accountancy firm EY found that just two-thirds of organisations thought they had adequate cyber coverage to meet their true exposure to cyber risk. There are several factors holding back the adoption of cyber insurance; from the perception that cyber risk is a “small-ticket item,” to confusion on policy wording, to a misalignment in thinking between an organization’s risk management and information security functions.
Insurance brokers are uniquely positioned to address some of these factors holding back the growth of cyber insurance. Marrying their understanding of insurable cyber risk with their business relationships and expertise in policy wording, brokers can seize this opportunity to grow the cyber market, while carving out an indispensable role for themselves. Several broking firms have figured out and have proven that these very challenges present opportunities to add a new layer of value-added service.
CyberCube has recently published a report “The Role of Intermediaries in Placing Cyber Risk”. It looks at ways brokers can help clients understand how more technical categories of cyber exposure map to insurable losses, and what steps a company can take to mitigate or transfer exposure for these risks. The report discusses how brokers can help underwriting partners become more comfortable with a given cyber risk and feed their appetite for growth.
The role of the broker in the cyber risk ecosystem is fundamental to its growth and development. With this in mind, CyberCube recently launched Broking Manager, our first product for the insurance broking market. Broking Manager helps brokers quantify, understand, and explain to their clients, the sources and financial impact of cyber risk exposure.