With stories of commercial mass data loss and network downtime grabbing headlines on an almost weekly basis, the commercial world is having to take note of the very real risk presented by our reliance on technology—and the methods available to mitigate and manage that risk. However, when it comes to insurance, are we seeing a disconnect between the insurer and insured’s expectations in the buying process of cyber coverage?
The Seller’s Perspective
The process of writing insurance can often be an arduous task of gathering and accessing enough information to critically evaluate the risks involved in providing cover to a client. Over the years we have seen the continued development of risk modelling procedures to ensure clients obtain competitive and reliable coverage, however the use of these tactics have served to increase the quantity and depth of information needed to satisfy underwriting conditions.
In the ever-changing world of cyber and technology, keeping up with developments is no small task, and this evolving risk creates challenges for insurers in terms of accurate underwriting. In fact, at a recent cyber risk conference held in the Willis Building, London, the frustration from underwriters in not receiving enough, or the right kind, or information was clearly evident, as they spoke of the difficulties of accurate risk assessment.
The Buyer’s Perspective
Insurance buyers looking to protect their organisations against cyber risk come across many challenges; internal obstacles can be created by senior management and board directors not being totally engaged with emerging risks. But more recently it has been the provision of information for quotation to insurers which has been causing headaches.
Seeking this relatively new category of specialist risks, insurance buyers can often find themselves being asked for in-depth and highly varied pieces of information from multiple insurers. Collecting all the required information can be time-consuming, if not impossible, and like underwriters, the insurance buyers are becoming increasingly frustrated with the time and resource drain involved to purchase a produce.
Simplicity for Buyers, Confidence for Insurers
When it comes to cyber insurance, it’s all about knowing what to ask. Getting the relevant information from insurance buyers allows underwriters to assess the risk more accurately, leaving the buyer satisfied that they have the necessary cover in place.