6 Steps to Growing Your Cyber Insurance Base

The FBI has ranked cybercrime as one of its top law enforcement activities due to large-scale cyber breaches on companies such as Target, Blue Cross, Anthem, JP Morgan Chase, Home Depot and many others. However, while not receiving nearly as much attention, smaller companies are similarly at risk. Property Casulty360 has provided a list of 6 steps for brokers to grow their cyber insurance base:

1. Make cyber the main event: Cyber liability is very complex and has many moving parts. It is essential to detach cyber risk from others to help simplify the concept and ensure that clients understand the risks at hand. Additionally, cyber proposals are often discussed at the end of a meeting when clients’ focus has most likely decreased. Instead, “approach the client solely with a cyber agenda ensuring it gets the focus it deserves.”
2. Do your homework: Before constructing a policy, it is important to gather background information as clients’ cyber risk profile can change drastically based on particular industries. In order to adequately match cyber coverage to a company’s risk, it is pivotal to understand the clients’ industries.
3. Simplify the pricing: In the initial stages, it is important that clients are not overwhelmed with too much information from the start. As far as pricing goes, a simple ballpark indication can help put cyber policies in perspective for the client. The client should first understand the need for coverage before diving into too much detail.
4. Provide real-world examples: “Researching and presenting actual breach examples within clients’ industries helps illustrate the need for coverage in a real and tangible way.”
5. Correct misconceptions: One common misconception is that breaches occur from IT problems that can be prevented simply by better network security. However, one study suggests that 31 percent of data breaches result from human error. Other breaches occur from third-party vendors which are often out of the clients’ control. That being said, better network security cannot always prevent data breaches from occurring but cyber insurance can certainly help cover those losses.
6. ‘No’ doesn’t mean ‘never’: Not all clients understand their risks of a cyberattack and can be hesitant to purchase coverage. While it is important to help clients understand these risks, discovering the source of their resistance can be just as beneficial.