How can cyber insurance providers improve their services?

How can cyber insurance providers improve their services? | Insurance Business Canada

Cyber

How can cyber insurance providers improve their services?

Brokers share their insights on the cyber landscape

In the face of a surging wave of cyber threats, brokers are looking to cyber insurance providers to help businesses mitigate their exposure to digital risks.

A number of these top-rated providers were recently recognized by Insurance Business Canada in its 5-Star Cyber 2023 report, selected by specialist brokers for the range of services they offer.

The brokers who voted for these carriers made their selection based on the following key factors:

Comprehensive coverage
Underwriting and cyber claims handling expertise
Competitive pricing
Breach response
Access to risk mitigation and evaluation partners

They also highlighted a carrier’s ability to meet the increased demand brought on by the recent surge in ransomware and malware attacks, as well as a surge in business email compromises.

“The COVID-19 era saw a dramatic spike in cyberattacks, particularly ransomware attacks, which caused significant losses to insurers,” said Gowling WLG partner Brent Arnold, whose specialization includes cyber security and data protection law.

Amid the growing prevalence of cyberattacks, brokers shared their observations and identified potential areas for growth within the cyber insurance sector. These suggestions included tailored products for organizations with budget constraints, such as municipalities and schools, as well as support with vendor management and risk mitigation tools.

Surveyed brokers also made note of flexibility in policy creation, insurer-provided cybersecurity solutions, and higher cybercrime coverage options.

Lastly, they called for ways to address social media-driven risks, such as those involving bots and deep-fake videos, as well as more affordable coverage for small businesses.

“We may be moving toward a time when the courts and privacy regulators will treat having cyber insurance as a table stakes part of cyber risk management, like having an incident response plan and technical safeguards,” Arnold added.

Read Insurance Business Canada’s 5-Star Cyber 2023 to learn more about what brokers are looking for in their cyber carrier partners.