Cyber Insurance: The Ultimate Solution to Mitigate Cyber
by Swati Tamhankar, Jr-Executive-Digital Marketing, Allied Analytics LLP
Technology has become a part of our lives. It is constantly transforming and improving our lives with innovations such as the internet of things (IoT), health-tech, 3d-printing, artificial intelligence (AI), robotics, and more. However, it also has its share of risks. The expansion of information technology in all spheres via social networks, mobile devices, wireless technologies, and cloud services resulted in more vulnerability. Cyber risks or threat is a growing concern for individuals, institutions, and businesses worldwide. Effective policies are required by organizations to protect themselves against threats. Therefore, several organizations are opting for IT security partners for their protection or depending on their insurers for cyber insurance products and services. Cyber insurance providers basically help companies prepare for cyber threats by contributing to minimizing the said loss or damage and bringing the situation back to normal.
The market for cyber insurance is rapidly changing and has seen strong growth in the past few years. The increase in demand for cyber insurance arises from new regulations, growing awareness of cyber risks among top-level high executives as well as the rising number of cyber-attacks across the globe. However, the lack of standardized policies impedes market growth. As per the report by Allied Market on the cyber insurance market, the industry is likely to accrue a sum of $14 billion by 2022, registering a CAGR of 28% during the forecast period, 2016-2022. Some of the players operating in the market include American International Group, Inc., The Chubb Corporation, Zurich Insurance Co. Ltd., XL Group Ltd., Berkshire Hathaway, Allianz Global Corporate & Specialty, Munich Re Group, Lloyd’s, Lockton Companies, Inc., Bit Sight Technologies, Pivot Point Risk Analytics, and more.
A series of launches and acquisitions took place in the space recently. One of them is the launch of a cyber self-assessment tool by Marsh, a global professional services firm headquartered in New York. Another is the acquisition of E-Risk Services, a liability insurance program manager by Nationwide, an insurance company. Kingsbridge Group, a British specialist insurance services provider, acquired insurrect company Dinghy.
Marsh Introduces Tool for Cyber Insurance
In January ‘19, a new cyber self-evaluation tool was launched by Marsh that includes the latest insights on cybersecurity high-quality practices to provide customers with a strong cybersecurity program diagnostic. It also helps smoothen the procurement procedure by serving as a single application for cyber insurance. The innovation makes use of information on organizational cybersecurity controls, technology, and people and figures out the strengths and flag areas of concern for underwriters. Thomas Reagan, US cyber practice leader at Marsh said, “In today’s fast-evolving cyber risk landscape, firms want to be able to gain greater insight into their cybersecurity preparedness. Marsh’s enhanced online cyber self-assessment provides clients with a comprehensive view of their cybersecurity program maturity, coupled with a streamlined, easy-to-use cyber insurance application process.”
Nationwide Buys E-Risk Services
In January 2019, Nationwide completed the acquisition of E-Risk Services with the aim of enhancing its business by expanding its distribution relationships through the latter’s wholesale network. E-Risk Services is a company that provides management liability coverages for various organizations such as commercial crime, cyber and technology, employment practices, and more via its Business and Management (BAM) package insurance product. According to Nationwide, the products offered by E-Risk would strengthen its excess and surplus line offerings for small and medium-sized enterprises and enhance its focus on growing both management lines and the program business space. Paul Tomasi, president at E-Risk Services, said that Nationwide has been a great supporter and partner for the growth of their company and the deal shows Nationwide’s true commitment to their wholesale broker distribution partners and several current and future policyholders insured through the E-Risk program. He said that they are glad about the acquisition as it brings many great opportunities and possibilities for their company.
Dinghy Acquired by Kingsbridge Group
The acquisition of Dinghy by Kingsbridge Group is aimed at expanding their ability to reach a broader segment of the important creative markets where freelancers demand a different approach to insurance and an enhanced user experience. Dinghy’s robust product and technology and Kingsbridge’s excellent marketing and commercial power allow the two companies to enhance their product offering to their clients and thereby accelerate their growth opportunities. Dinghy is a company that provides public liability, equipment covers, legal expenses, and cyber liability via their mobile-first website and Kingsbridge provides insurance services contractors, freelancers, the recruitment and utility industries, and others.
About the Author
Sharmistha Sarkar has always had a keen interest in reading and writing. Though an engineering graduate, she forayed into the field of writing due to her love for words and the urge to do something different. Allied Market Research has given her the chance to gain knowledge about different subjects as a senior content writer.