Putting a price on protection: the importance of cyber insurance

SCOTT CUTLER | March 23, 2020 | 109 views

For almost as long as businesses have been subject to risk, some form of insurance has existed to mitigate their exposure. The first recorded commercial insurance policies date back to Babylonian times, and in the thousands of years since, the types of business cover available have multiplied exponentially, driven by the uptake of technology. It’s now over 20 years since the first cybersecurity policy was written. At the time, this was considered groundbreaking – although by modern standards, its scope was limited. These days, cyber insurance providers cast a far wider net. By 2025, it’s expected the global market size will grow to over $23 billion. Some policies cover the costs arising from first-party data breaches, while others cover liability for damages, providing assurance for companies who collect and store sensitive customer information.

Spotlight

R&R Insurance Services Inc

Large insurance agency covering business, personal and health insurance. We are known as THE KNOWLEDGEBROKERS. Privately owned, agile and resourceful, we reinvest profit for innovation, professional development and new resources for our customers. That means opportunity for everyone! We are always looking for sales/account executives, customer service representatives and operations professionals.

OTHER ARTICLES
CORE INSURANCE,RISK MANAGEMENT

Reinsurance Market Maintaining Its Firming Trend

Article | September 22, 2022

Despite economic pressures on reinsurers and cedants, nearly all buyers were able to secure coverage during the reinsurance renewal period. However, attachment levels and the cost of ceding risk were higher than most buyers desired, and supply constraints in some lines and territories caused stress not seen in years. As a result, according to Gallagher Re's latest 1st View renewals report, the reinsurance market has maintained its firming trend. Despite mostly positive H1 2022 results, the combination of inflation and rising interest rates has caused reinsurers to adjust their balance sheets and reserves while also taking into account how a recessionary environment may increase claims frequency. These economic factors, combined with sustained loss levels, allowed reinsurers to maintain upward pricing pressure as they sought to reduce their appetite for volatility. Key Contributions to Understanding: Natural disaster capacity decreased overall as reinsurers continued to shift away from low-level layers, which differed by country and region. Reinsurers were seen assessing cedants' inflation-related actions and applying carefully calculated loadings to relevant treaties. The Russian invasion of Ukraine increased interest in cyber and war contract provisions. Long-tail casualty placements remained popular among reinsurers, but there was more debate about ceding commissions than in recent renewals. Higher ILS risk transfer prices have attracted net new capital, but this has not resulted in market softening. The inflation discussions have been detailed and technical, with reinsurers eager to challenge cedants' model outputs. Most reinsurers are assessing reserve adequacy as interest rates rise, in addition to their concerns about primary rate adequacy in the new inflationary environment. They are experiencing effects simultaneously on the asset and liability sides, which has strengthened their resolve to maintain the pricing momentum of the previous two years.

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INSURANCE TECHNOLOGY

Security Think Up: It’s Time to Give a Thought About Cyber Insurance

Article | July 15, 2022

The rise in remote work during and after the pandemic has increased cyber vulnerabilities significantly. Cyber insurance protects your company from the financial consequences of cyber threats or data breaches involving computer systems and data. Credit card numbers, social security numbers, account numbers, health records, and driver's license numbers are examples of sensitive customer information. According to a recent SBA survey, 88% of small business owners believe they are vulnerable to a cyberattack. If your company is a victim of cybercrime, the cost of recovery can be prohibitively expensive, including specialized repairs and legal fees. One of the most difficult challenges is quantifying cyber risk. Although approaches and frameworks like NIST CSF, CIS 20, NCSC Cyber Essentials, and ISO 270001 aid in the development of cyber security capabilities, they do not provide the tools to quantify risk. As a result, leaders frequently overestimate their cyber maturity while underestimating cyber insurance premiums. Potential Cyberattack Types are: Breach of data: A breach occurs when critical information, such as personal financial information, is stolen. Cyber-attacks on computers:Your computer system is hacked and compromised in this type of cyberattack. Extortion via the internet:During an extortion threat to your company's computer system, thieves may demand ransom payments. To address these issues, a variety of approaches can be used, ranging from zero-trust models to multi-factor authentication (MFA) and end-point detection and response (EDR) (EDR and XDR). Protective monitoring, encryption applied to the most critical aspects of your network, and patch management processes can also provide insurers with the assurance they require. There are options for both small and large amounts of cyber liability coverage. A small cyber liability insurance policy could be added to the policy of a business owner. A larger cyber liability policy with higher limits would necessitate its own policy. Furthermore, they provide a real-time view of compliance through a risk-based approach that is consolidated, consistent, and aggregated across the entire organization. Workflow automation can help the IRM system become more efficient. By consolidating your risk management processes, you can ensure that controls continue to deliver on their objectives and demonstrate compliance with policies, standards, and regulations while having a lower impact on your day-to-day operational demands. All of this will make it easier to meet cyber insurers' requirements and give organizations confidence that their policy will protect them when they need it.

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CLAIMS

Insurers Are Preparing to Accelerate Growth in 2022

Article | July 15, 2022

Despite ongoing concerns about COVID-19 variants, most insurers anticipate a faster economic recovery and increased investments in digital technology in 2022. One-third of those polled expect revenues to be "significantly higher" next year. The global demand for insurance is expected to rise further. Insurers face a variety of challenges, including economic hurdles such as the possibility of sustained inflation; sustainability concerns such as climate risk, diversity, and financial inclusion; and rapidly changing consumer product and purchase preferences. Attracting (and Retaining) Talent Will Be Critical in a Hybrid Work Environment Future of work considerations have also grown in importance as carriers strive to develop flexible return-to-office strategies while also struggling to retain and recruit high-level talent in a highly competitive job market, particularly for those with advanced technology and data analytics skills. Insurers Must Find a Way to Balance Technological Adoption with the Preservation of the Human Touch Insurers are becoming more reliant on emerging technologies and data sources to increase efficiency, improve cybersecurity, and expand capabilities across the organization. Most, however, should focus on improving the customer experience by streamlining processes with automation and providing customized service where needed and preferred. Opportunities to Increase Stakeholder Trust Have Arisen as a Result of the Pandemic On a more fundamental level, many carriers should consider taking steps to increase stakeholder trust in order to increase retention and profitability. This could be accomplished in part by increasing transparency in how insurers collect and use personal data. They can also become more proactive in seeking comprehensive solutions to large-scale societal issues, such as reducing the financial impact of future pandemics and closing coverage gaps for natural disasters.

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INSURANCE TECHNOLOGY

Digital Transformation in Insurance Industry

Article | June 30, 2022

Insurers of the future will play more of a risk avoidance role and less of a risk mitigation one. The seemingly effective yet simple ideas of Netflix, Uber, Ola, Amazon, and many other ideas have forever transformed their industry segments. Digital transformation in the insurance industry is embraced in various ways to address the complex challenges posed by consumers, regulatory, and digital landscapes. To keep up with insureds' demands, insurers have had to digitize various aspects of their operations. Any company that wants to stay competitive in today's market must meet customers where and when they need it. Insurance's digital transformation, powered by artificial intelligence, machine learning, predictive analytics, mobile services, live chat, and other technologies, enables insurers to do just that and will continue to change the industry for years. Insurance Companies to Look at Value Chain through a Digital Lens: Gain First-Mover Advantage: Product introduction to gain a potentially sustainable competitive advantage. To achieve the first-mover advantage, the insurer should have two crucial capabilities: the ability to pinpoint unmet customer needs to guide product development and quickly adapt existing products to market forces. Reduce IT costs to fund innovation: When insurance companies refactor monolithic applications into modular micro services, application maintenance costs are reduced. Grow revenue by differentiating the customer journey: Electronic document capture and processing, robotic process automation (RPA), and robo-advisors improve serviceability and help businesses gain a competitive advantage. Despite market participants' claims that the insurance industry was not an early adopter of digital transformation, new players, business models, and demanding customers are forcing the industry to embrace digital technologies. As a result, the global insurance market is expected to grow by 45% between 2022 and 2025. Modern digital engineering does not occur in a vacuum; new products must be compatible with existing technologies and processes. Ascertain that the development team understands legacy insurance applications and the data required to integrate them with new, digitally engineered products.

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Spotlight

R&R Insurance Services Inc

Large insurance agency covering business, personal and health insurance. We are known as THE KNOWLEDGEBROKERS. Privately owned, agile and resourceful, we reinvest profit for innovation, professional development and new resources for our customers. That means opportunity for everyone! We are always looking for sales/account executives, customer service representatives and operations professionals.

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LIFE INSURANCE

Major Financial Institution Selects Sapiens to Disrupt How Life Insurance is Sold in the Americas

Sapiens | September 28, 2022

Sapiens International Corporation, a leading global provider of software solutions for the insurance industry, announced today that a major financial services entity has selected Sapiens to deliver its life insurance service in the Americas. Sapiens' award-winning CoreSuite for Life & Annuities and DigitalSuite SaaS solution will provide them with next-generation customer sales and service experience. The companies solidified the partnership at the Insurtech Conference (ITC) on September 20. Sapiens CoreSuite for Life & Annuities is an end-to-end, cloud-native solution complete with enhanced digital capabilities to support whole life, universal life, wealth accumulation products and annuities. This will power this financial services entity with an advanced, simplified 360°degree view of customers within the policy administration system, across all distribution channels and communication streams. Sapiens DigitalSuite offers a dynamic, digital engagement and enablement platform for insurers to provide a unified, omni-channel experience. "We are very excited to partner with this financial services entity on their next-generation life insurance operations, Sapiens Core administration solution and the pre-integrated digital enablement platform will enable them to offer life insurance services that are customer-centered, in an innovative way, based on our cloud-native solutions." -Jamie Yoder, Sapiens North America President & General Manager Sapiens is attending the ITC Conference (Booth #2239) between September 20-22, at the Mandalay Bay in Las Vegas, and available to meet and discuss offerings and solutions. About Sapiens Sapiens International Corporation empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. Backed by more than 40 years of industry expertise, Sapiens offers a complete insurance platform, with pre-integrated, low-code solutions and a cloud-first approach that accelerates customers' digital transformation. Serving over 600 customers in 30 countries, Sapiens offers insurers across property and casualty, workers' compensation and life markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management.

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CORE INSURANCE

World Insurance Associates Acquires Cotten Coverage Insurance Agency and Expands Long Island Presence

World Insurance Associates LLC | September 28, 2022

World Insurance Associates LLC (WIA), a Top 50 Insurance Brokerage, announced today that it acquired Cotten Coverage Insurance Agency (“Cotten Coverage”) of Farmingville, NY on September 1, 2022. Terms of the transaction were not disclosed. Cotten Coverage provides property & casualty personal lines products and services, as well as commercial lines products and services to customers on Long Island. The agency was founded in 1991 by Bob Cotten and his wife Karen. Bob started in the business as an associate actuary with Allstate on Long Island in 1984. “We know our clients and we know insurance, so our clients have the peace of mind that comes with knowing their insurance agency can help them regardless of how big, small, unique, or specific their insurance needs are, We take great pride in the quality of service we provide for our customers, and we look forward to continuing to do so as part of WIA.” -Bob Cotten, Owner, Cotten Coverage insurance Agency On behalf of everyone at WIA, I’d like to welcome Cotten Coverage to the World family, Cotten Coverage is a successful agency—voted “Best Insurance Agency on Long Island" for 10 years—and I know they will continue providing their clients the excellent service they have come to expect,says Rich Eknoian, CEO and Co-Founder of WIA. Giordano, Halleran & Ciesla provided legal counsel to WIA, and Fortrust Diligence advised them on the transaction. APEX Consulting, Inc. provided legal counsel to Cotten Coverage, and Agency Brokerage Consultants advised them on the transaction. No other advisors, diligence firms or legal counsel were disclosed. About World Insurance Associates LLC World Insurance Associates LLC (World) is headquartered in Iselin, N.J., and is a nationally ranked, full-service insurance organization providing individuals and businesses with top products and services across personal and commercial insurance, employee and executive benefits, retirement and financial services and human capital management solutions. Since its founding in 2011, World has completed 160 acquisitions and serves its customers from more than 250 offices across the United States. World is ranked #34 on the 100 Largest Brokers of U.S. Business list by Business Insurance, ranked #2 on the Fastest Growing Brokers list by Business Insurance and is a Top-50 ranked personal lines agency by Insurance Journal.

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INSURANCE TECHNOLOGY

NeuralMetrics Launches MarketEdge - An Intelligent, AI-Powered Commercial Insurance Lead Management Platform

NeuralMetrics | September 26, 2022

NeuralMetrics, a provider of fast, actionable commercial lines intelligence for insurance lead generation and underwriting, today announced the launch of MarketEdge, an AI-powered platform to research and filter U.S.-based businesses and markets, prequalify leads, and attain desirable insurance customers. Additionally, the solution evaluates the propensity of businesses to change insurance providers in upcoming renewal cycles, enabling insurers to efficiently add qualified policyholders based on business characteristics and risk factors. With an initial focus on the U.S. workers' compensation market, NeuralMetrics is adding additional commercial lines of business to the MarketEdge product portfolio. MarketEdge uses artificial intelligence (AI) and natural language processing (NLP) to identify qualification information and viable leads so that insurers can reliably pinpoint the best prospects especially important in the workers' comp policy sector, where finding leads is time consuming with low rates of conversion success. Driven by intelligent technology, MarketEdge leverages information from a variety of public databases and information sources, including OSHA, the Centers for Medicare and Medicaid, the Environmental Protection Agency, paycheck protection recipients, licenses, permits, and inspections, and much more. The company regularly augments data and adds new sources of information. "The workers' comp market is undergoing significant changes. COVID-19 implications, including shifts to virtual work, as well as the impacts of inflation and cost-cutting measures have business leaders reevaluating and seeking optimal insurance coverage and policyholder services, NeuralMetrics and its MarketEdge solution help carriers, brokers, and agents take advantage of those opportunities, by applying AI and complementary advanced technologies to quickly and accurately identify top targets and prospects." -Prakash Vasant, CEO, NeuralMetrics NeuralMetrics is on a mission to make commercial insurance underwriting easier and more efficient. The launch of MarketEdge is a key element of the broader NeuralMetrics platform, which includes SmartRatioTM, an AI-powered solution to help insurers obtain reliable industry classifications and generate compliant data insights and risk intelligence to proficiently underwrite commercial business. Using SmartRatio, insurance companies and their distribution partners can rapidly classify businesses with just a company name and address, understand the associated risks, and access specific underwriting information required for precise pricing and proposal generation. About NeuralMetrics NeuralMetrics facilitates comprehensive lead management and accurate, contextual commercial lines underwriting for property/casualty insurance organizations. The company's easy-to-deploy data-aggregation platform is powered by AI and natural language processing to instantaneously and transparently extract industry-compliant, actionable risk-assessment intelligence from dynamic, public sources of information. As a domain-expert partner to insurers, NeuralMetrics enables lead sourcing and qualification, reliable rating classification, incisive underwriting, and precise policy pricing.

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LIFE INSURANCE

Major Financial Institution Selects Sapiens to Disrupt How Life Insurance is Sold in the Americas

Sapiens | September 28, 2022

Sapiens International Corporation, a leading global provider of software solutions for the insurance industry, announced today that a major financial services entity has selected Sapiens to deliver its life insurance service in the Americas. Sapiens' award-winning CoreSuite for Life & Annuities and DigitalSuite SaaS solution will provide them with next-generation customer sales and service experience. The companies solidified the partnership at the Insurtech Conference (ITC) on September 20. Sapiens CoreSuite for Life & Annuities is an end-to-end, cloud-native solution complete with enhanced digital capabilities to support whole life, universal life, wealth accumulation products and annuities. This will power this financial services entity with an advanced, simplified 360°degree view of customers within the policy administration system, across all distribution channels and communication streams. Sapiens DigitalSuite offers a dynamic, digital engagement and enablement platform for insurers to provide a unified, omni-channel experience. "We are very excited to partner with this financial services entity on their next-generation life insurance operations, Sapiens Core administration solution and the pre-integrated digital enablement platform will enable them to offer life insurance services that are customer-centered, in an innovative way, based on our cloud-native solutions." -Jamie Yoder, Sapiens North America President & General Manager Sapiens is attending the ITC Conference (Booth #2239) between September 20-22, at the Mandalay Bay in Las Vegas, and available to meet and discuss offerings and solutions. About Sapiens Sapiens International Corporation empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. Backed by more than 40 years of industry expertise, Sapiens offers a complete insurance platform, with pre-integrated, low-code solutions and a cloud-first approach that accelerates customers' digital transformation. Serving over 600 customers in 30 countries, Sapiens offers insurers across property and casualty, workers' compensation and life markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management.

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CORE INSURANCE

World Insurance Associates Acquires Cotten Coverage Insurance Agency and Expands Long Island Presence

World Insurance Associates LLC | September 28, 2022

World Insurance Associates LLC (WIA), a Top 50 Insurance Brokerage, announced today that it acquired Cotten Coverage Insurance Agency (“Cotten Coverage”) of Farmingville, NY on September 1, 2022. Terms of the transaction were not disclosed. Cotten Coverage provides property & casualty personal lines products and services, as well as commercial lines products and services to customers on Long Island. The agency was founded in 1991 by Bob Cotten and his wife Karen. Bob started in the business as an associate actuary with Allstate on Long Island in 1984. “We know our clients and we know insurance, so our clients have the peace of mind that comes with knowing their insurance agency can help them regardless of how big, small, unique, or specific their insurance needs are, We take great pride in the quality of service we provide for our customers, and we look forward to continuing to do so as part of WIA.” -Bob Cotten, Owner, Cotten Coverage insurance Agency On behalf of everyone at WIA, I’d like to welcome Cotten Coverage to the World family, Cotten Coverage is a successful agency—voted “Best Insurance Agency on Long Island" for 10 years—and I know they will continue providing their clients the excellent service they have come to expect,says Rich Eknoian, CEO and Co-Founder of WIA. Giordano, Halleran & Ciesla provided legal counsel to WIA, and Fortrust Diligence advised them on the transaction. APEX Consulting, Inc. provided legal counsel to Cotten Coverage, and Agency Brokerage Consultants advised them on the transaction. No other advisors, diligence firms or legal counsel were disclosed. About World Insurance Associates LLC World Insurance Associates LLC (World) is headquartered in Iselin, N.J., and is a nationally ranked, full-service insurance organization providing individuals and businesses with top products and services across personal and commercial insurance, employee and executive benefits, retirement and financial services and human capital management solutions. Since its founding in 2011, World has completed 160 acquisitions and serves its customers from more than 250 offices across the United States. World is ranked #34 on the 100 Largest Brokers of U.S. Business list by Business Insurance, ranked #2 on the Fastest Growing Brokers list by Business Insurance and is a Top-50 ranked personal lines agency by Insurance Journal.

Read More

INSURANCE TECHNOLOGY

NeuralMetrics Launches MarketEdge - An Intelligent, AI-Powered Commercial Insurance Lead Management Platform

NeuralMetrics | September 26, 2022

NeuralMetrics, a provider of fast, actionable commercial lines intelligence for insurance lead generation and underwriting, today announced the launch of MarketEdge, an AI-powered platform to research and filter U.S.-based businesses and markets, prequalify leads, and attain desirable insurance customers. Additionally, the solution evaluates the propensity of businesses to change insurance providers in upcoming renewal cycles, enabling insurers to efficiently add qualified policyholders based on business characteristics and risk factors. With an initial focus on the U.S. workers' compensation market, NeuralMetrics is adding additional commercial lines of business to the MarketEdge product portfolio. MarketEdge uses artificial intelligence (AI) and natural language processing (NLP) to identify qualification information and viable leads so that insurers can reliably pinpoint the best prospects especially important in the workers' comp policy sector, where finding leads is time consuming with low rates of conversion success. Driven by intelligent technology, MarketEdge leverages information from a variety of public databases and information sources, including OSHA, the Centers for Medicare and Medicaid, the Environmental Protection Agency, paycheck protection recipients, licenses, permits, and inspections, and much more. The company regularly augments data and adds new sources of information. "The workers' comp market is undergoing significant changes. COVID-19 implications, including shifts to virtual work, as well as the impacts of inflation and cost-cutting measures have business leaders reevaluating and seeking optimal insurance coverage and policyholder services, NeuralMetrics and its MarketEdge solution help carriers, brokers, and agents take advantage of those opportunities, by applying AI and complementary advanced technologies to quickly and accurately identify top targets and prospects." -Prakash Vasant, CEO, NeuralMetrics NeuralMetrics is on a mission to make commercial insurance underwriting easier and more efficient. The launch of MarketEdge is a key element of the broader NeuralMetrics platform, which includes SmartRatioTM, an AI-powered solution to help insurers obtain reliable industry classifications and generate compliant data insights and risk intelligence to proficiently underwrite commercial business. Using SmartRatio, insurance companies and their distribution partners can rapidly classify businesses with just a company name and address, understand the associated risks, and access specific underwriting information required for precise pricing and proposal generation. About NeuralMetrics NeuralMetrics facilitates comprehensive lead management and accurate, contextual commercial lines underwriting for property/casualty insurance organizations. The company's easy-to-deploy data-aggregation platform is powered by AI and natural language processing to instantaneously and transparently extract industry-compliant, actionable risk-assessment intelligence from dynamic, public sources of information. As a domain-expert partner to insurers, NeuralMetrics enables lead sourcing and qualification, reliable rating classification, incisive underwriting, and precise policy pricing.

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