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, according to a new report from cyber analytics provider CyberCube.
The report highlighted several challenges the market faces in growing adoption of cyber insurance, including the speed with which cyber insurance wordings evolve, and the perception of cyber as a small ticket item, and the disconnect between risk management and information security functions.
But CyberCube believes that several broking firms have proven that these challenges present opportunities for brokers to add a new layer of value-added service.
“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,” said John Anderson, CyberCube’s Client Services Manager.
“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.”
CyberCube noted that 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.
Additionally, brokers with expertise in cyber can feed underwriters’ appetites for growth by helping underwriting partners become comfortable with cyber risk.