Cyber insurance is a growing and lucrative market, but it also poses some unique challenges for agents and brokers. How can you leverage insurtech to increase your sales and provide value to your clients? Here are some effective ways to sell cyber insurance with insurtech.
Cyber insurance is not a one-size-fits-all product. Different industries and businesses have different exposures and needs. You need to understand your target market's cyber risks, pain points, and preferences. Insurtech can help you with data-driven insights, risk assessments, and tailored solutions. For example, you can use insurtech platforms to scan your prospects' websites and networks for vulnerabilities, identify their cyber coverage gaps, and offer them customized quotes and policies.
The partnership extends beyond just insurtechs, it extends into adjacent ecosystem players, such as cloud providers, cybersecurity MSPs and SOCs and even law firms. There are specialised cyber insurance brokers and MGAs that are also addressing the pain points for the customers in the areas of cyber risk management and mitigation.
I recently read an article who highlight how in an increasingly digitized world, the risks of cyberattacks and data breaches have become ever more prevalent, surging the cyber insurance importance to unprecedented heights. Organizations of all sizes are increasingly concerned about the escalating threat of cyber attacks with SMEs being particularly vulnerable. In 2022, the world witnessed a staggering 38% surge in global cyberattacks compared to the previous year. Among these attacks, ransomware emerged as the primary risk encompassing over 85% of all incidents. Intriguingly, companies with less than 1,000 employees bore the brunt of these attacks, accounting for 82% of all ransomware incidents.
Cyber insurance is still a relatively new and complex product, and many businesses may not fully understand its benefits, features, and exclusions. You need to educate your prospects and clients about the value of cyber insurance, the types of cyber incidents and losses it covers, and the best practices to prevent and mitigate cyber risks. Insurtech can help you with interactive tools, content, and simulations. For example, you can use insurtech platforms to show your prospects and clients how cyber insurance works in different scenarios, provide them with relevant and engaging information and tips, and test their cyber readiness and awareness.
In my experience insurers need to carefully design coverage that encompasses diverse threats like data breaches, ransomware attacks and social engineering. This involves constant adaptation to emerging risks and technologies. The solution lies in crafting dynamic policies that address the evolving landscape of cyber threats, providing thorough protection against a mosaic of complexities and ensuring that no aspect of potential risk is left unaddressed. Obviously develop digital tools to engage SME's could be useful to increase the level of awareness and education, but it must be only a "soft part" compared to a seamless insurance product
Cyber security and cyber risk are two sides of the same coin; customers need to be at a certain level of cyber security hygiene and posture before eligible for an affordable cyber insurance plan. Otherwise the premiums would be so high that it is better off investing that same amount in having the basic cybersecurity infrastructure in place. Insurance companies are now working with ecosystem partners to strengthen their prospects while educating them about risk mitigation strategies at the same time.
Cyber insurance can be a time-consuming and cumbersome product to sell, as it often requires extensive underwriting, documentation, and verification. You need to streamline your sales process to make it faster, easier, and more convenient for your prospects and clients. Insurtech can help you with automation, integration, and optimization. For example, you can use insurtech platforms to simplify your application and quote process, connect with multiple carriers and markets, and monitor and manage your policies and claims.
Educating the clients on the relevance of cyber insurance in today's day and age is imperative. Laws and regulations across the world are evolving to make the data fiduciary liable for any data theft or security breach. Cyber insurance is no more a luxury but now mandatory requirement of any business.
Cyber insurance is not just a product, but a service. You need to enhance your value proposition to differentiate yourself from your competitors and build long-term relationships with your prospects and clients. Insurtech can help you with additional features, benefits, and support. For example, you can use insurtech platforms to offer your prospects and clients access to cyber security experts, incident response teams, breach notification services, and cyber risk management tools.
Apart from active threat monitoring and scanning tools, cyber insurance specialists brings in their extended ecosystem of products and services to assist when a breach or incident happens, the first 48 hours an incident is usually the most crucial, including a 24/7 incident response team, legal team to ensure on time notification to the regulators and the customers, PR and communication, etc.
Cyber insurance is a trust-based and relationship-driven product. You need to leverage your network and referrals to generate leads, increase your credibility, and expand your reach. Insurtech can help you with social media, online reviews, and incentives. For example, you can use insurtech platforms to share your success stories, testimonials, and recommendations on social media, encourage your satisfied clients to leave positive reviews and ratings online, and reward your loyal clients and partners for referrals.
I don't believe that a social media strategy could be really effective to increase the level of awareness of final customers (mainly SMEs) Probably an embedded insurance distribution model could work better to scale cyber insurance products starting from easy product that could increase knowledge in this area
In my experience by far the moste efficient way would be embedded - crucial is to find the right event/time/purchase. Also the product has to be easy and self explaining. More complex products - if necessary - need explanation and another sales channel
Similar to a fire and business continuity insurance for businesses; Cyber insurance ensures that a business has access to support and resources to recover from an incident, minimise the damage caused by the incident. More specialised insurers and MGAs have now offered risk assessment tools, active threat monitoring and notification, working with the security team or MSPs or SOCs. Regulators around the world are working on a National cybersecurity framework and standards to ensure the now more digitally exposed SMEs are protected. Recently we’ve seen the collaboration extend to cloud providers working with insurers to offer clients a peace of mind in times of need.