Cyber Insurance Market Growing Along With Cyber Concerns
Insurance companies are honing their skills at underwriting and pricing stand-along cyber insurance policies, trying to keep pace with increasing concerns amongst businesses. More companies are showing concerns with potential data breaches and malicious attacks, and are taking steps to protect their data and business from this potentially devastating risk.
As discussed in “U.S. Cyber Insurance Market Grows Amid Data Breach Concerns,” posted by the Insurance Information Institute (I.I.I.) on PRNewsWire.com, over 60 insurance carriers currently offer stand-along cyber insurance policies. Estimates suggest that in 2016, the U.S. market of gross written premiums was worth approximately $3.5 billion and has the potential to increase to as much as $7.5 billion. Experts cite cyber incidents as the third-highest global risk, with the average cost for a breach reaching up to $7 million.
Commercial general liability policies don’t usually cover cyber risks and there are several types of coverages that businesses may consider when investigating a cyber insurance policy including liability, crisis management, management liability, business interruption, cyber extortion, loss of data, criminal rewards, data breach and identify theft. Each element covers a specific event and can still be difficult for insurers to underwrite. Insurers require a lot of reliable information, much of which is rapidly changing in a constantly evolving cyberspace.
Consolidate Data in ERP, Be Prepared to Address Changing Client Needs
Insurance agencies using disparate management systems don’t have the time to devote to analyzing marketplace conditions or new risks. This, in turn, can make your team unprepared to handle changing client needs. Replace aging, legacy systems with an integrated enterprise resource planning (ERP) solution designed to meet your unique operational needs. A modern ERP solution can streamline common, daily tasks and provide an efficient way to manage policies, increase sales, and track commissions for your agents. By removing the administrative burden from brokers and agents, your team will have more time to investigate cyber insurance and other insurance product changes or trends. With all of your key data in one system, your team can evaluate reliable financial, insurance and customer information quickly and respond faster to changing conditions or client needs.
Many businesses are becoming increasingly concerned about the risk and costs for a cyber-attack or data breach. As a result, there appears to be an increase in stand-alone cyber insurance policies. Contact AKA Enterprise Solutions to learn how you can be prepared to meet changing client needs by using ERP to strengthen and streamline internal operations.
By AKA Enterprise Solutions, a Microsoft Dynamics CRM and ERP Partner for Financial Services