They say that the prisoner is an outcome that is sold, never bought – and, as a product, we often spend a lot of time focused on the acquisition tier: the trace scenario of potential customers, their refuge gaps, their shopping preferences. job… your indifference even.
However, with the cyber prisoner, shoppers are strongly embracing refuge begging, recognizing the dash pass as an indispensable lever in the general pending against cyber criminals. Yet few companies are actually buying cyber prisoners these days.
As cyber underwriters enter what in our previous post we called a “tough market included in a tough market”, the expense of protection is reaching unprecedented levels, making it inaccessible to all but the ancestors players.
Thus, while the buy-side adopts an increasingly mature attitude, it is the sell-side that remains unprepared, and we are yet to witness a market-sized result that insurers can remunerate for the value of most clients.
Today’s post looks at some of the reasons for this disconnect between buyers and sellers, which goes back to the nature of cyber risks themselves: risks that share many, but never all, characteristics of NatCat risks.
Once Small Businesses Awake to the Cyber Toughness Trait
Let’s start with the acquisition tier and once the cyber prisoner has gone from an exotic beast to a routine object of the meeting room. Finally, cyber policies are never new, they have been in circulation in one form or another for over 20 years. So why the modern arrival in the mainstream?
What has changed is that we have reached a point of curvature in technology adoption. While large corporations have had large IT presences for decades, this has not been incessantly true for small and medium-sized businesses (SMBs).
But these days, most companies are digital-first, even individual merchants, and many have further embraced remote labor and cloud computing. The cyber trait currently affects everyone in every industry and affects them daily.
We can follow the broadening of the cybernetic chip by conducting some basic media analyses. Factiva’s short chart – based on its record of newspapers, news outlets, industry publications, magazines and reports – proves the extent of single articles referencing “cyber inmate” from nearly a figure in 2012 to ~4,000/year in 2020.
That figure is set to more than double in 2021. An equal trajectory can be traced to mentions of SMB’s cyber toughness. The ever-increasing chip on the cyber toughness and cyber prisoner has brought many new buyers to the desk with risks that need to be covered: from ransomware attacks and cyber-related service suspension to civil engineering and data breaches. With the dynamics of the tier from acquisition to aspect, we are currently turning to the tier of sales.
What we find here is really a continuous pending to supply affordable and suitable products for the destination. Or to put it another way: insurers have never been more successful in extending the size market’s endowment than they have been in increasing the size market’s demand.
These sales tier issues fall into two broad categories, policy-level share and individual risks, portfolio-level share. Let’s see both. Cyber Insurance is currently on a bending object and ready for a quick extension. Find out more in our ultimate Cyber Insurance: Uno via fruitful overtime report.