Insurers are undertaking several initiatives to seize opportunities in writing network security and privacy insurance in order to achieve profitable growth. These are some of the actions on which they are focusing:
- Dedicated Expertise: Insurers are creating dedicated cyber units that utilize their insurance expertise from the property and liability side by blending them to match both first and third party insuring agreements
- Sharpening underwriting tools: Insurers are advancing their efforts to more accurately assess and quantify customers’ risk profiles by helping them achieve more granular and prescriptive results by mining in-house data and licensing third party risk and portfolio management tools
- Working with ‘white hats:’ Risk engineers and ethical hackers are bringing more technical expertise into the industry by hiring network vulnerability searchers and raising questions that supplement traditional underwriter assessments
- Diversification: While cyber is global in nature and no single geography is safe from exposure, insurers seek diversification of their portfolio across industry classes, company size and geography in an effort to protect against a systemic event that might target common insureds.