Technology closing the cyber resilience gap for insurers

Cyber insurance is becoming increasingly important in the digital insurance landscape as insurance companies look for new ways to differentiate themselves from competitors, protect customers, and differentiate themselves in the market. While preventing cyberattacks is always the goal, breaches are inevitable. The consequences of being unprepared are being felt across the industry. Rising claims costs, increased underwriting risks, and customer disaffection are some of the challenges insurance companies face. Consequently, insurers are turning to new technologies and services to make cyber resilience part of their cyber insurance program – helping customers secure their businesses and respond to cyber incidents while improving and deepening the relationship.  

Communication and secure collaboration

At the forefront of this shift are cyber resilience platforms that offer insurers and their clients the tools and strategies to minimize the impact of a breach and accelerate recovery. These platforms enable secure, out-of-band communication and collaboration among leadership, IT/security teams, and external providers, ensuring that all stakeholders can coordinate response efforts without the risk of compromise. This is particularly crucial during a catastrophic cyber event, where maintaining operations and secure communication is essential.

Out-of-band communication provides a secure and reliable means for insurance companies to manage incidents, share critical information, and make time-sensitive decisions. This helps detect and contain threats quickly and ensures that regular updates can be communicated internally and externally. By leveraging these secure platforms, insurers can reduce panic, prevent the spread of misinformation, and keep operations running smoothly.

Proactive preparation and business continuity

Cyber resilience platforms also support clients in maintaining critical business functions during cyberattacks, which is crucial for protecting their bottom line, reputation, and customer satisfaction. A key feature of these platforms is their emphasis on proactive preparation, including scenario modeling and tabletop exercises that prepare relevant stakeholders for potential incidents. These exercises ensure that everyone involved—both within the organization and among external partners—understands their roles and responsibilities, enabling a swift and coordinated response.

For example, if a company’s systems are compromised by a sophisticated phishing attack, resulting in ransomware encrypting the entire IT infrastructure, these platforms ensure that all key stakeholders are prepared. With a business continuity plan in place, companies can engage backup systems, utilize out-of-band communication, and continue operations without interference from the attackers. This reduces the time it takes to bring systems back online, minimizes downtime, and protects the integrity of the business.

Enhancing customer experience and competitive advantage

Implementing advanced technology designed to improve cyber resilience can have a significant impact on customer experience. Insurers can boost customer satisfaction and loyalty by minimizing the negative effects of cyberattacks, leading to increased engagement and retention. Policyholders are more likely to remain with insurers that demonstrate preparedness and the ability to handle crises effectively.

Moreover, offering a robust cyber resilience platform can be a powerful competitive differentiator for insurance companies in a crowded market. By providing cutting-edge technology that enables secure, isolated, and collaborative incident response processes, insurers can stand out from competitors that may not offer similar capabilities. This differentiation not only strengthens customer trust but also positions insurers as leaders in the industry.

Conclusion

Cyber resilience is rapidly becoming a critical aspect of the digital insurance landscape as companies seek to differentiate themselves and provide additional protection against cyberattacks. By adopting advanced cyber resilience platforms that facilitate secure communication, proactive preparation, and coordinated response, insurers can close the resilience gap, protect their customers, and maintain a competitive edge in the market. As cyber threats continue to evolve, the insurers that invest in these platforms will be better equipped to navigate crises, ensuring their long-term success and the security of their policyholders.