By checking this box, I consent to sharing this information with BitSight Technologies, Inc.toreceive email and phone communications for sales and marketing purposesas described in our. Engage multiple teams including security, IT, compliance, and legaleach has a role to play in providing timely input. Sublinks, Show/Hide Hiring a cyber insurance underwriter comes with a long list of benefits. Cyber insurance underwriters help you consistently capture revenue by improving client retention. Sitemap. This website uses cookies so that we can provide you with the best user experience possible. In short, underwriters actively work to increase your profits through specialized methods developed over years of experience. Underwriters have unique knowledge of risks and exposures and use years of experience to finely hone their skills. By design, underwriters specialize in protecting insurance agents, brokers, and companies from non-profitable business opportunities. Theyre used alongside findings from cyber risk assessment tools to provide insights into security domains, such as administrative security controls and recovery procedures, that cannot be determined by the signals picked up in automated network perimeter scans. Increased access to these benefits is one of the top reasons brokers cite when they decide to partner with a cyber insurance underwriter. On top of this, insurers are bracing for the impact that COVID-19 will have on cyber risks this year. Such services have been available for the past few years in cyber insurance, but the uptake rate has been fairly limited for a number of reasons. The trajectory of cyber risks can be tackled from two different angles concurrentlyby curbing cybercrime and by raising the entry level for cybercriminals in breaching organizations' digital infrastructure. The scope of BI coverage had rapidly expanded in recent years to include outages caused by vendors (contingent or dependent BI) and unexplained or non-malicious events (system failure). The only question left is: why wait? The cyber insurance underwriting process requires a significant dedication of resources. According to a World Economic Forum report, "cyber insurance pricing in the United States rose by 96% in the third quarter of 2021, marking the most significant increase since 2015 and a 204% year-over-year increase.". Another common exclusion are state-sponsored cyber-attacks. comes with a long list of benefits. While these have mostly been used for large account customers, theyre slowly being adopted in the upper middle market segment. Additionally, 50% of global cyber insurance gross written premiums are underwritten by BitSight customers including AIG, Chubb, and Hartford. As the World Bank Group explains in its Primer Series on Insurance, underwriting is an art and not a science. Underwriters have a unique ability to find risk-management-oriented solutions that limit exposure and grow your revenue. Both were advanced persistent-threat attacks, and they amplify the limitations of cyber underwriting processes. Vendor management controls if your business relies on third-party vendors for any key information technology and security services. BitSight Security Ratings are a great way to prove your cybersecurity protection efforts to a cyber risk insurance provider. As the World Bank Group explains in its, , underwriting is an art and not a science.. Resources Solutions , saving you a significant amount of time and money. Hiring an experienced cyber insurance underwriter is good for business; and the professionals at ProWriters can help benefit yours with the institutional knowledge that comes from our 20 years in the industry. In the past, when new coverages appeared in the market, they were made readily available by most insurers for little to no additional cost because they gave insurers a competitive advantage in a softening market. While policyholders and new buyers have to cope with increased scrutiny and rising premiums, more risk control benefits are now available to them. To meet the fast-rising executives' interest in cyber insurance and cover the inflated cyber risk from insurers' and reinsurers' perspectives, a shift in thinking should focus both sides on risk prevention, improved visibility and quantification during the risk assessment phase. Opinions expressed are those of the author. can be the difference between 10% and 20% annual growth for insurance providers. Curbing cybercrime requires global cooperation and coordination, which may or may not ever take place. You may opt-out by. About Us Insurers could leverage this dynamic scoring for two complementary purposes: During the pre-binding phase. , and companies from non-profitable business opportunities. Cyber insurance underwriters benefit insurance brokers and agents by taking on a host of specialized tasks. Underwriting is a unique component of the insurance industry, and taking advantage of professional underwriting services streamlines the cyber insurance underwriting process, saving you a significant amount of time and money. This absolutely affects your revenue; data from Frederick Reichheld of Bain & Company demonstrates that an increase in customer retention rates of just 5% increases profitability by 25% to 95%. Before you continue reading, follow us on LinkedIn so you dont miss any important cyber updates: lang: en_US. One of the immediate consequences of a lack of measurability is the creation of insurmountable obstacles in tracking the evolution of the security posture over time. Due to an increase in ransomware attacks, underwriters are now starting to sublimit or remove these expanded BI coverage features. Even a comprehensive penetration test covering all known attack tactics, techniques and procedures available at the time of the test only provides a snapshot of the security posture. Maps the attack surface and infiltration routes. The second major shift is happening right now with the ransomware epidemic that started in 2019 and continues to worsen. This means you dont take on the training and staffing costs associated with underwriting, and thats better for your business and your bottom line. Its just one of the reasons insurance. As with other application forms, some questions represent absolute cybersecurity requirements while others fall into the preferred category. According to research from, more expensive than retaining a customer you already have. Please provide your consent for cookies by using the Cookie Settings link below: Woodruff-Sawyer & Co. Insurance Services | Risk Management | Employee Benefits. Because cookies are blocked, we are unable to display this signup form. Heres what you need to know to prepare if youre purchasing cyber insurance for the first time or headed into a renewal in 2020. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. When in doubt, ask your broker. Weve seen many of our key cyber insurers implement at least one or a combination of the following to get more details and better understanding on a companys due diligence process: If the companys responses are not favorable, the outcome could be one or more of the following: In order to get a better outcome in todays cyber insurance placement or renewal, invest more time into the process. At the same time, underwriting talent is becoming harder to find; by some estimates, there is a 40 to 50% shortage in North America alone. As a result, cyber insurers are tightening their underwriting guidelines and clarifying coverage intent in their policy language. They focus on both prevention and recovery controls; one of the most effective measures to mitigate ransomware attacks is a recent, tested, and well-protected backup. Some of the responsibilities underwriters have include: Cyber insurance underwriters like the professionals at ProWriters are experienced in the ever-changing risks associated with cyber coverages. The insurers will want to know your third-party vendor vetting process, and if they are subject to the same standards that you would have internally. Now coverage and pricing are more reflective of the actual risks and exposures that insurers are comfortable insuring. He joined The Hartford (through Navigators Group) in February 2017 and is responsible for the Cyber Risk and Technology Errors and Omissions product suite, underwriting strategy, and incident response solutions, and is leader of the enterprise Cyber Risk practice. And CCPA is just the beginning. If youre getting ready to purchase cyber insurance or renew an existing policy, heres how you can secure the right coverage. The first is an increase in claims frequency and severity from ransomware attacks, which have led to more business interruption losses. About Us The ransomware threat has proven far more challenging to the cyber insurance market than data breach risk because its not industry or size specific and loss amounts are far more unpredictable. To learn more about ProWriters industry-leading underwriting services, connect with an expert today. While some ports are necessary for regular internet facing operations, such as web applications, unused ports left open to the internet will increase the risk of attacks. Copyright 2022 Cyber Insurance Academy | Registered as Cyber Advisory Excellence | Rothschild Blvd 45, Tel-Aviv | +972 5290594 , you get more than just the baseline underwriting services. The SolarWinds breach is already one of the most significant cybersecurity incidents ever. #0I27809 | like the professionals at ProWriters are experienced in the ever-changing risks associated with cyber coverages. Privacy Policy | Be aware that you might be seeing more questions specifically around COVID-19, such as how youre responding to increased cyber risks with. By finding a qualified cyber, all of the analytics with respect to risk assessment and policy placement can be handled separately, freeing up resources to focus on high-level tasks like client retention. requires a significant dedication of resources. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Cyber insurers have clearly shown an intent to reduce ambiguity in their policies. All Rights Reserved, This is a BETA experience. According to research from Harvard Business Review, acquiring a new customer is between five and 25 times more expensive than retaining a customer you already have. Underwriting for cyber insurance is relatively more complex for the following reasons: The task of cyber insurance underwriting is therefore to adequately assess the exposures faced by clients and to determine the extent to which those threats are being mitigated in the risk management process. Focusing on quantifiable and verifiable cyber resiliency is key to enabling cyber insurance underwriters to accurately evaluate the risk over extended periods. Visit our course catalog for more information on our cyber insurance training. It can also measure the extent and effectiveness of automated mitigation and attacks maximum reach. Show/Hide And the right underwriting partner will go even further by giving you access to the top cyber insurance carriers and products on the market. These can be exploited by threat actors and often have been by the time theyre disclosed to the public. Insurers use of tools to assess policy-holders security posture is not an entirely new underwriting approach in cyber insurance; however, these practices have become much more widespread than they were just a few years ago. They are also responsible for setting a price and establishing the insurance premium that will be charged in exchange for taking the risk. Lack of continuity. Prepare by following the tips in this article, making sure you are thoughtful when articulating your unique risks and insightful when providing information around your controls, processes and procedures. Ransomware attacks have been rising at an alarming rate with victims ranging from one of the largest fuel suppliers in the United States to Irelands Department of Health. Use of multi-factor authentication, either for all access or for remote or privileged access is typically one of the must-have controls, Frequent backups and protected backup storage, Disabled or protected Remote Desktop Protocol (RDP is a remote access tool commonly exploited for ransomware delivery), Confirmation that no end-of-life operating systems are used, Cybersecurity rating reports with identified vulnerabilities, Cybersecurity remediation and improvement assistance. This means that every time you visit this website you will need to enable or disable cookies again. Requiring a ransomware supplemental questionnaire, asking specific ransomware threat-related questions around backups and recovery, multi-factor authentication, vendor management, email security, employee training, and other network protections. Insurers are now communicating more explicitly about what types of events can trigger a cyber policy, and what losses the policy pays out. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive, or exemplary damages in connection with the use by you or anyone of the information provided herein. Expertise from Forbes Councils members, operated under license. Previously, Avihai was the Head of the Cyber Research Team at Avnet Cyber & Information Security. It is, in fact, logical to assume that, as wide adoption of such an approach would harden global cyber resiliency, it would raise the entry-level access to cybercrime and contribute to its reduction. Sublinks, Show/Hide In addition to relying on traditional methods such as risk assessment questionnaires, which are often subjective and hard to verify, todays sophisticated underwriting technology can shine a light on your security posture in a non-invasive and data-driven way. Requiring a network business interruption supplemental questionnaire, asking specific questions around business continuity plans, incident response plans, and restoration and recovery procedures. , with cyber insurance making up an increasing share of the total. To reduce risk and potential losses, insurers are becoming more diligent about risk assessment during the application process and throughout the life of the policy. Today, modern cyber risk management can enable an accurate and comprehensive framework that: 2. Find Out How. If youre in a high-risk sector, such as critical infrastructure, technology, or finance, this form of coverage is crucial. Recent nation-state attacks have further elevated concerns about future cyber-related catastrophe events, and the deterioration of loss ratios due to the increase in attritional losses is adding increased pressure on cyber insurers to adequately model for such events. During the post-binding phase. Next, begin gathering the information that potential insurance companies will need. Visit our, How to become a cyber insurance professional, How insurers should deal with silent cyber. By finding a qualified cyber insurance underwriter, all of the analytics with respect to risk assessment and policy placement can be handled separately, freeing up resources to focus on high-level tasks like client retention. 3. Since its creation in the late 1990s, cyber insurance has gone through several evolutionary changes both in terms of the coverage provided in cyber policies and the process through which underwriters assess cyber risk. At the same time, or as a consequence, cyber insurance premiums increased by 33.5% in 2020 alone, the extent of coverage is reduced, and insurers are increasingly relying on reinsurance. Partnership And Protection: SMEs And MSPs, Africa's Chaotic Legal And Regulatory Cybersecurity Landscape Requires Harmonization, Why Great Technology Innovators Think About Platforms, Three Critical Risks Plaguing The Enterprise In The Age Of Digital Interconnectivity, The Four Biggest Obstacles To Strategic Planning, Crossing The Chasm Between S&OP And Autonomous Planning, What The SMB Loan Fraud Problem Means For API-Based Technology. Standard lines of insurance, such as property, general liability, and workers compensation, have long incorporated risk control services that help reduce both the frequency and severity of loss. Asking specific questions around measures taken to prepare for compliance with all applicable industry and privacy regulations, and tracking legislative developments. is good for business; and the professionals at ProWriters can help benefit yours with the institutional knowledge that comes from our 20 years in the industry. The yearly penetration test might be sufficient to satisfy compliance regulators, but fails to provide the cyber insurance underwriter with a continuous evaluation of the insured's security posture. According to a report from Deloitte Financial Services, underwriters can be the difference between 10% and 20% annual growth for insurance providers. Conditioning the extent of the coverage to a preset variance from the baselines established during the pre-binding phase, calculated to allow for a correction time window in case of security drift following a new deployment push or the emergence of a new threat. Before you sign on the dotted line, study your insurers contractual wording to avoid any misunderstanding of what is covered and whats excluded. A failure to do so may result in a higher premium or declined coverage. Its no surprise that, consider cyber to be a major area for future growth, and. These tools, typically cybersecurity rating applications, collect information from a number of different data sources, including vulnerability scans, threat intelligence, and cybersecurity research, and they use a proprietary algorithm to aggregate the data into a score, rating, and/or probability of loss. specialize in protecting insurance agents. Why BitSight? These technologies have become essential tools in setting the appropriate prices and establishing the cyber insurance premiums for clients. Many of these application forms had become obsolete due to the constantly changing threat landscape and cybersecurity protection measures. The second is claims under new and evolving consumer privacy legislation, such as the General Data Privacy Regulation (GDPR), Biometric Information Privacy Act (BIPA), and California Consumer Privacy Act (CCPA). Many hackers rely on network and system vulnerabilities such as open ports, unpatched software, and misconfigured systems for their attacks. Demonstrates the quality of the learning of the Cyber Insurance Academy and confirms that it meets CII/ Personal Finance Society member CPD scheme requirements. Tweets by @roughnotesco With both the insured digital infrastructure and the cybercrime landscape in constant flux, a point-in-time evaluation is increasingly inadequate in providing actionable figures to quantify risks and calculate premiums and coverage efficiently. Then, vulnerable attack paths will need to be identified for further mitigation in order to help accelerate access to a better security posture. Once all the information is gathered, and the proper due-diligence process is preformed, the underwriter can select the appropriate levels of cover they wish to offer the potential client and insurance pricing. Lack of flexibility. Do I qualify? Sublinks, Show/Hide Once these metrics are received, the next step is measuring trends and variance from pre-established baselines and preventing security drift. The only question left is: why wait? actively work to increase your profits through specialized methods developed over years of experience. Its just one of the reasons insurance brokers choose ProWriters to boost their business and their bottom line. Other elements of a mature and established security management program that underwriters look for are a robust data management strategy, multi-factor authentication, network segmentation, and endpoint protection. Whether you are placing cyber insurance for the first time or headed into a renewal, preparation is going to be key to meeting the rigorous demands of the insurers. These applications are increasingly mandatory for organizations to complete when seeking cyber coverage or renewal of an existing policy. This report from Gartner reveals cybersecurity predictions about culture, the evolution of a leaders role, third-party exposure, and the boards perception of cyber risk. Many policyholders and their agents or brokers have not been fully aware of the benefits of the services, and the subscription is often an afterthought to the procurement of the policy itself. Business interruption (BI) is another area of coverage where we are seeing changes in insurer appetite. Due to a rise in claims (many of them stemming from the surge in ransomware), the underwriting process has changed significantly in recent years.