Brokers hold key to cyber growth, says new CyberCube report
May 2020 by CyberCube
Insurance brokers have a critical role to play in addressing adequate coverage and a range of other factors holding back growth in the cyber insurance market. This is the key finding of a new report by cyber risk analytics specialist CyberCube.
According to The Role of Intermediaries in Placing Cyber Risk, brokers are ideally positioned to help organisations address problems that are hindering their adoption of cyber insurance.
The report highlights several challenges the market faces in growing adoption of cyber insurance; from the speed with which cyber insurance wordings evolve and the perception that cyber is a “small-ticket item” unworthy of too much of a risk manager’s time and effort, to a lack of joined-up thinking between organisations’ risk management and information security functions.
The report goes on to say that several broking firms have proven that these challenges present opportunities for brokers to add a new layer of value-added service.
John Anderson, CyberCube’s Client Services Manager, said: “Cyber risk presents a unique opportunity for brokers to further entrench themselves as trusted advisors, helping corporations navigate the complexities of this risk and successfully insure it. 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.”
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. Brokers can also leverage their relationships with insurance carriers to deliver new, fit-for-purpose solutions to address both existing and emerging cyber risks.
Cyber-savvy brokers can feed underwriters’ appetites for growth by helping underwriting partners become comfortable with cyber risk. Understanding the view of both clients and underwriters will maximise efficiencies, striking mutually beneficial deals for both parties.
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.
Earlier this month, CyberCube launched Broking Manager, its 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.