Fast, accurate pricing for cyber security insurance
In the digital economy, automated connections with partners and customers reduce friction and costs, but also raise the potential for cyber crime. With the annual cost of cyber crime estimated at $400 billion, insurers are seeing rapid growth in demand for cyber insurance policies. However, they face significant challenges in pricing and monitoring risk.
The need for speed
In a highly competitive market in which SMBs constitute 90% of first-time buyers, the need to price policies at high speed is challenging for insurers, given the difficulty in sourcing reliable information from these clients.
Currently, 30% of brokers report inconsistency in pricing, and 75% of brokers and underwriters believe that client organisations lack a clear view of their own exposure – such that the aggregated exposure for the insurers is even harder to measure.
Automated pricing
To address the challenge, forward-thinking underwriters are replacing manual risk-assessment processes and questionnaires with smarter automated approaches to get better and faster risk insight at the point of pricing or renewal of policies.
Moving to a technology-led approach will help not only in the initial pricing process, but also in the ongoing management of risk for both the insurer and the policyholder. Prevention is always better than cure, and the ability for both parties to maintain a dynamic view of their exposure will pay huge dividends in terms of avoiding the need for claims.
Ongoing assessments
By investing in a solution that constantly measures the security maturity level of policyholders, encompassing also the multi-dimensional risk across their supply chains, cyber security insurers can significantly improve their assessment of aggregate portfolio risk.
In addition to helping underwriters provide rapid, accurate and consistent pricing quotations – particularly valuable in securing SMB business – detailed ongoing risk assessments allow insurers to build closer relationships with policyholders rather than only being in contact at renewal time.
Download more insurance themed white papers
White Paper
Fast, accurate, efficient pricing and risk assessment for cyber insurance policies
Solution Guide
Data Record Masking in the insurance industry
Solution Guide
Northdoor in the insurance industry
Report
Northdoor 2021 Cyber Risk Assessment of the UK Insurance Industry
Case Study
Northdoor Actuarial Application Industrialisation
Brochure
Advanced analytics and cognitive computing for insurance
White Paper
Data protection – Six steps all companies can take now
Brochure
Northdoor’s Protect IT security practice
Related Articles
Solution
RiskXchange AI-Enhanced Cyber Risk ManagementMap your partner and client ecosystem to determine and manage your 360° cyber risk rating.
Request a demo or contact sales on: 0207 448 8500
Request a consultationLatest Blog Articles
Subscribe to our newsletter
Subscribe to our newsletter to get the very latest insights and updates in the world of enterprise IT and data security: