As businesses come to terms with General Data Protection Regulation (GDPR) and Mandatory Data Breach Notification Scheme (NDB), they require more complex and robust levels of data breach reporting and incident response.
According to Deloitte’s report on Insurance Industry Outlook 2018 these changes may compel an increase in cyber insurance coverage for those impacted by the legislation.
According to the report, the market for cyber insurance has had a slow development curve, leaving most of the companies under-insured for a cyber security event.
“A recent survey by the Council of Insurance Agents & Brokers found that only one third of their members’ clients have bought cyber coverage of some sort, while a global study by the Ponemon Institute revealed that companies have only insured 15 percent of the potential loss to their information assets.”
The report addresses – What should Insurers do?
- Insurers should try to stay ahead of security and privacy regulations prompted by increased data sharing.
- Insurers should stay on top of multiplying compliance demands; this could be especially challenging for medium to small size companies that do not have the cyber capacity in house.
- Insurers will likely need to bolster their in-house talent with outside talent and managed services, particularly loss-control specialists to improve risk management, recovery, and compliance programs.
- Developing a cyber resume template for smaller prospects on a mass scale could help insurers set standard, preferred and substandard risk.
Be more transparent; the industry could initiate sharing of anonymous and aggregated loss data.
So what products are hitting the market?
Specialist insurtech, Edmund has launched a customer-focused cyber insurance product, underwritten by Munich Re Syndicate at Lloyd’s, to enable SMEs to quickly and efficiently address increasing cyber-security concerns, such as ransomware, malware, and social engineering fraud.
In an interview with Insurance Business Australia, Joel Pridmore, Head of Financial Lines & Business Development at Munich Re Syndicate commented:
“Edmund is an insurtech which is filling a very real need – the capability for Australian SMEs to quickly and efficiently buy a very comprehensive cyber insurance policy,”
Joel Pridmore, Head of Financial Lines & Business Development at Munich Re Syndicate will be presenting on ways to align product to evolving needs & unique industry risks at the upcoming Cyber Insurance Conference to be held on 4th December in Sydney.