To successfully underwrite cyber insurance, insurance carriers need a partner to help them look forward, according to Aite Group’s latest report
Boston, MA (Oct. 9, 2018) – Insurance carriers can rely upon reams of historical data to underwrite traditional property and casualty policies, but this amount of historical data does not exist yet for cyber insurance. Moreover, underwriting cyber insurance requires understanding threats that have yet to emerge. Fortunately for carriers around the world, risk modeling has evolved to include cyber risk, and a limited number of risk modeling firms can offer assistance. Aite Group’s newest report, What Carriers Should Seek From Cyber Risk Modeling Partners, highlights key areas for carriers to evaluate if they were to consider cyber risk modelers as partners.
“As cyberattacks continue to proliferate, more firms are considering cyber insurance to round out their insurance protection,” explains Jay Sarzen, senior analyst at Aite Group. “While this presents a major opportunity for many insurance carriers, this also presents a significant challenge for them to overcome in terms of making good underwriting decisions. This becomes even more pertinent as more carriers are underwriting these policies as stand-alone policies instead of merely tacking a cyber endorsement onto a traditional insurance policy,” he states.
This new Aite Group report makes the case for partnering with a cyber risk modeling firm to help carriers make better cyber insurance underwriting decisions. It is based on 16 interviews conducted between April 2018 and August 2018 with U.S.-based executives at cyber risk modeling firms, insurance carriers that currently underwrite cyber insurance, and firms that are high-value targets for cyberattacks.
Click here for the online report summary or to download the table of contents.
To to speak with Jay Sarzen about this topic, please contact [email protected].
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 at www.aitegroup.com.
Source: Aite GroupTags: Aite Group, cyber risk, predictive modeling