Risk Placement Services (RPS) is an industry leader in providing comprehensive coverage for a wide range of cyber threats such as ransomware attacks, identity theft and social engineering. The company’s simple quote-and-bind process and consultative approach, which extends to numerous industries, helped secure a 2022 5-Star Cyber award from Insurance Business America.
Robinson said there had been a decline in the frequency of ransomware cases in the past six months, and the actor groups were often smaller and less experienced than those who initiated similar attacks 12-18 months ago. There has also been a decrease in claim frequency since the start of 2022, which he believes is partly due to “a heightened sense of awareness via news channels [about] the federal government’s focus on these types of attacks.” Another reason is the widespread use of deterrents like multifactor authentication and endpoint detection, which are some of the measures required for companies to have cybersecurity insurance.
Although cyberattacks are likely to continue as long as they are “anonymous and lucrative,” Robinson finds that the targets and ransom demands are relatively small. The fast-changing features of cyber threats mean that clients would need dynamic coverage, which goes alongside changes in underwriting criteria, Robinson said.
Amid evolving threats, brokers can support their clients by working with insurers like RPS, which has underwriting experts who can help clients make plans, review cyber applications (including the ransomware supplement), and address any deficiencies in their insurance coverage. A partnership with specialist insurers can create greater value for customers, he said. Another way to help is by improving clients’ knowledge of systemic risk and critical vulnerability exclusions.
Robinson’s advice for brokers? “Have a discussion with your clients and talk about the plan for remedying these types of [threats],” he said. “[They] typically are going to involve a commitment of resources, both in investment of money and staffing… [but] they really need to be changed… It’s in the interest of the client for them to prevent these claims from happening in the future.”
Regarding the trend of flattening rates and the likelihood of a softening market, Robinson sees the current pricing and underwriting practices as indicators of “a continued necessary correction in the market [and] a maturing product,” which will be reflected in rate increases in the most recent renewal cycle.
Watch the full interview here