Insurance brokers play a vital role in addressing adequate coverage and several other factors constraining growth in the cyber insurance market, suggests a new report by CyberCube.
According to the cyber risk analytics company’s The Role of Intermediaries in Placing Cyber Risk report, brokers are well-positioned to help companies address issues that are hindering their adoption of cyber insurance. The report also discusses challenges the market faces in growing cyber insurance adoption, including the speed with which cyber insurance wordings evolve and the perception that cyber is unworthy of much time and effort on the part of risk managers.
However, the report found that several insurance brokerage firms have shown that these challenges present opportunities for brokers to add a new layer of 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, client services manager for CyberCube. “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.”
Brokers can help clients understand how more technical categories of cyber exposure equate to insurable losses, as well as what steps companies can take to mitigate or transfer exposure to those risks. Brokers can also help underwriting partners become more comfortable with cyber risk, CyberCube said.