In this blog series, Accenture's Max Richter examines how collaboration and innovation will play an important role in managing an ever-changing cyber-risk landscape. and why London combines all the elements needed for a worldwide cyber security ecosystem.
Cyber Insurance: Huge Growth Opportunities for Future Insurers
Cyber risks are some of the biggest threats to companies today. The frequency, severity and sophistication of cyber attacks continue their fast upward paths. At the same time, the latest privacy-related rules, such as GDPR, are increasing the efforts of companies that do not have enough to protect themselves and their customer data.
Technical progress will only be used to burn new cyber exposures in the future. Blockchain, AI and autonomous vehicles present all significant new opportunities for cyber criminals.
Despite the increasing exposure, cyber risks remain deeply uninsured. Globally, premiums are estimated to be less than 1
As awareness and demand continue to rise, it is evident that internet insurance is a huge potential market with great growth potential
For us, it is important to protect against a constantly changing risk landscape, and demand robust and ever-evolving cyberfastness strategies.
In our opinion, insurers now have the opportunity to develop new and unique bills that take a holistic view of their customers' need for Internet protection. By expanding services and mindset beyond risk compensation, insurers can increase the value of their cyber protection measures. Reduces the threat to cyber attacks and increases the recovery rate.
By doing so, they also have a critical opportunity to differentiate, gain competitive advantage and increase their business while increasing the connection and engagement with their customers.
End-to-end cyber protection
So, how does holistic security services look to the Internet? We see four critical elements that are integrated into final web protection:
- Complete and transparent risk analyzes for the Internet – with insurance companies and brokers working together to improve customer training on cyber risks. The services may include areas such as industry-specific risk frameworks, client training, and hot notice.
- Measured Prohibition Offenses to Reduce Exposure Risks – including Approach or Real-Time Threat Monitoring; industry and business-specific risk management; contingency planning;
- Tailor-made insurance cover and other products – including risk-adjusted premiums and terms.
- Emergency and incident management – with flexible and globally available incident response teams, designed to quickly restore businesses to their perceived state.
For more information on what we consider necessary, see our latest report, co-author of AXA XL and the City of London Corporation, Cyber Insurance's Global Future and London's market-leading role .
It is also important to note that more holistic cyber insurance proposals create a good circle for customers and insurers. Reducing the likelihood and the seriousness of a successful cyber attack turns customers into more attractive risks to insure. It is also possible to increase the understanding and trust between customers and insurers.
Cybersecurity ecosystems will be the key to developing market-leading bills
To give cyber proposals containing all four of these elements, innovation and collaboration between industries will be crucial. The insurers need to utilize a broader cyber security ecosystem, with partners all over the value chain. These can include brokers, legal companies, security vendors, hot intelligence specialists, IT forensics companies and promotional companies.
When developing such services and acting as end-to-end glue, these components and partners bind, insurance companies can get the leading market leader in one of the largest growth opportunities offered today in the global insurance market. At the same time, by participating in the first response team, they have the opportunity to really deliver to their customers in their moment.
To stay ahead in this fast-paced risk landscape is the time to act now.
In my next blog, I will explain why the London market has such an important role to play in the future of cyber insurance.