[Highlights from Webinar] Navigating the Cyber Insurance Frontier: Trends, Responses and Innovations
Navigating the Cyber Insurance Frontier: Trends, Responses and Innovations
On 7 Nov ‘23, Protos Labs held an online webinar hosted by Plug and Play Tech Center SV. Speakers included:
🔎 Marco Lo Giudice, PhD, Head of Emerging Risks at Lloyd's, the world’s leading insurance and reinsurance marketplace.
📝 Sie Lau, Ex-Cyber Senior Underwriter from Top 4 Global Reinsurer, with over 20 years of experience in the (re)insurance industry.
💻 Joel Lee, CEO and Co-Founder of Protos Labs, a Singapore-based InsurTech that provides underwriting and early-warning solutions for cyber insurers.
🎤 Simeon Tan, Co-Founder of Protos Labs and the moderator of this session.
Our webinar drew over 40 participants, including leading insurers and brokers in the U.S. and around the globe, cybersecurity regulators, fellow insuretechs, investors, and peers in the cyber risk management space.
Cyber insurance trends, responses, and innovations, as shared in the webinar, are as follows.
Overview
Cyber insurance is a rapidly evolving field, with new trends, responses, and innovations emerging all the time. As the cyber threat landscape continues to evolve, policyholders and insurers alike must stay informed and adapt their strategies accordingly.
Trends
Some of the key trends in cyber insurance include:
Increasing demand for more comprehensive coverage: Policyholders are demanding more from their cyber insurance policies, including coverage for business interruption, reputational damage, and regulatory fines.
Sophistication of underwriting: Insurers are using increasingly sophisticated methods to assess cyber risk, including inside-out scans and AI-powered analytics.
Hardening market: The cyber insurance market is hardening, with rates increasing and capacity tightening.
Growing interest in parametric products: Parametric insurance products, which pay out based on pre-defined triggers such as a cloud outage or ransomware attack, are gaining popularity.
Responses
In response to these trends, policyholders and insurers are taking a number of steps, including:
Improving cyber hygiene: Policyholders are investing in cybersecurity measures to reduce their risk of attack and improve their insurability.
Working with cyber experts: Insurers are partnering with cybersecurity experts to help clients assess their risks and implement appropriate controls.
Developing new products and services: Insurers are developing new products and services to meet the needs of policyholders, such as parametric products and proactive risk management services.
Innovations
Some of the key innovations in cyber insurance include:
Use of AI: AI is being used in cyber insurance to improve underwriting, risk quantification, and claims management.
Development of parametric products: Parametric insurance products are being developed to cover a wider range of cyber risks.
Collaboration with cloud providers: Insurers are partnering with cloud providers to help clients improve their cloud security.
Conclusion
The cyber insurance frontier is constantly evolving, but one thing is clear: cyber insurance is essential for businesses of all sizes. By staying informed of the latest trends, responses, and innovations, policyholders and insurers can navigate the frontier together and protect themselves from the growing cyber threat.