Selling cyber insurance presents a unique set of risks to insurers, who will need to partner with a host of vendors to succeed; those who embrace the convergence between cybersecurity and insurance will strengthen their hold on the market
Boston, MA (June 22, 2016) – Although the insurance industry has been selling cyber insurance in the United States – and, to some extent, internationally – for a number of years, the market is still in its infancy. Cyber insurance still represents less than 1% of global commercial insurance premiums.
Demand for cyber insurance is growing, however, and as risks mutate, insurers are pursuing two objectives. First, they want to shield themselves from the silent cyber exposures buried across all of their products. Second, they want to grow their market share in this emerging segment of commercial insurance.
Cyber risks are a complex problem, and insurers (along with brokers and reinsurers) are keenly aware they won’t succeed by going it alone. They badly need help. And a host of vendors is responding to the call to arms.
“The changing nature of cyber risk puts pressure on insurers that may have signed up for more risk than what they originally bargained for and on insureds that may not be properly covered against emerging threats,” explains Aite Group research director, Gwenn Bezard. “Insuring cyber risks presents a unique set of risks to insurers that will need to partner with a host of vendors to succeed.”
Aite Group’s latest report, Cyber Insurance and Cybersecurity: The Convergence, maps and profiles 35 vendors that serve the cyber insurance industry in North America, Europe, and beyond. This report highlights what the vendor community can offer to insurers.
Aite Group finds that in the long run, only the cybersecurity data vendors with access to a wealth of claims data will thrive, while vendors that aren’t tied to claims data will likely fade away over time.
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About the Report
This report first highlights a few trends shaping the cyber insurance market and profiles 35 vendors that are catering to cyber insurers, brokers, and reinsurers: Advisen, Air Worldwide, AllClear ID, Axio Global, BAE Systems, BitSight, CGI, CrowdStrike, Dynetics, Epiq Systems, Experian, FireEye, FourV, IBM, ID Experts, IDT911, K2 Intelligence, Kivu Consulting, Lockheed Martin, Morphick, PivotPoint RA, QuadMetrics, Radar, Risk Based Security, RiskAnalytics, RiskGenius, RMS, RSM, SecureWorks, SecurityScorecard, Symantec, The Crypsis Group, UpGuard, Verisk’s ISO, and Zeguro. It is based on over 60 Aite Group interviews conducted between January and June 2016 with cybersecurity vendors, insurers, brokers, actuarial consultants, attorneys, and insureds’ risk managers and information security officers.
This 81-page Impact Report contains eight figures and one table. Clients of Aite Group’s P&C Insurance service can download this report.
About Aite Group
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web at aitegroup.com.