Howden Insurance Brokers believes SMEs face huge cyber risks and has dramatically simplified the cyber-insurance assessing & buying process:
Incidents such as ransomware attacks, data breaches, and IT disruptions rank as the top global risk in the Allianz Risk Barometer – and by a clear margin for the first time this year. Attacks on SMEs have grown significantly as larger companies ramp up their protections. With the explosion of generative AI, the current daily attacks are expected to multiply and become even more individualized. SMEs are not safe from the growth of untargeted attacks, which are spread indiscriminately.
Simplified Cyber Insurance for SMEs
Imagine all your systems are shutting down. You can’t service your clients. You have lost contact with suppliers. Your client’s data is in third-party hands. Would you be ready for this scenario? Can you imagine the losses? 60% of SMEs without cyber coverage face bankruptcy within just 6 months of experiencing a cyberattack. The new platform ensures that they have the knowledge and tools they need to make their businesses more resilient.
Cyber risks cost the global economy 40 times more than the risks associated with fire. Despite this, the fire insurance industry is almost 5X the size of the cyber insurance industry. Cyber insurance is predominantly purchased by large corporations because they typically have the resources to navigate an advanced procurement process. SME clients have been historically underserved by the cyber insurance market, with only 14% of SMEs having cyber insurance coverage in place.
Amit Solanki, Head of Liability & Special Risk at Howden Insurance Brokers (India) shares details about the newly introduced SME insurance covered by the company: “The company launched Cyberwrite SME cyber insurance on May 21, 2024. The new cyber platform offers SMEs a simple process to obtain top-quality cyber insurance coverage. This includes 24×7 assistance and access to advanced data and analytics software. It also provides additional insights to clients before, during, and after policy inception.” Howden also support clients and brokers with an AI-powered bot to answer all questions about cyber risk and cyber insurance.
Risks Coverage & Process
Howden leverages technology to Howden wanted to streamline the process and avoid traditional proposal forms to ensure a smooth experience – for this it leveraged technology. It also minimized risks by selecting insurers with proven cyber expertise and a solid claims history, with policy wording reviewed and endorsed by Howden experts. Its goal is simply to help clients improve their cybersecurity and enhance their security posture.
Amit dives deeper: “We adopt an ‘on track’ approach that allows all clients to obtain a quote, with cyber consultancy available for additional requirements. During the policy period, we offer active risk monitoring through Cyberwrite and assist with onboarding and preparation in case of a cyber event. Key policy coverage includes crisis management featuring a 24×7 crisis panel to guide insureds during problems, court attendance, PR costs, and subsidized IT risk management.”
The insurance covers third-party liabilities such as cyber liability, privacy liability, and media liability (generally online only), as well as regulatory investigations and fines that are insurable. First-party costs and expenses are also covered, including incident response costs (forensics, credit monitoring, PR notification), costs to repair business interruption, e-theft (virus/hacking), and e-extortion.
Amit explains the process: “Every client is pre-approved and eligible for an insurance proposal with only 4 pieces of information required for a quote: name, industry, annual revenues, and website. Supplementary data is gathered via open APIs, ensuring that underwriting standards are upheld despite the greatly simplified purchase process.”
Risk Assessment & Coverage
Howden has collaborated with insurers to identify the crucial information required for middle-market accounts. This collaboration has involved leveraging global expertise in handling claims, particularly those related to ransomware, given the recent high frequency of such claims. This partnership has led to a significant reduction in the number of relevant questions. Furthermore, the company has worked with insurers to ensure that this information is automatically collected using technology such as vulnerability scans.
Amit stated: “We are in the process o of partnering with leading insurers companies that offer extensive claims experience and have a global reach while also having a strong local presence, including proficiency in local language and laws. We have also taken into account the incident response panel (comprising group of experts prepared to assist in managing various incidents, ranging from cyber-attacks to natural disasters) and have strived to negotiate the best terms and conditions, including pricing.”
Market Penetration & Business Growth
This platform is available in all 55 countries where Howden operates. The company offers cyber insurance to tens of thousands of clients, providing them with a valuable tool to complement their cybersecurity controls. The insurance broker also in the process of creating a marketplace to assist its clients in choosing the right cybersecurity providers, and the company aims to continue expanding this offering in the future.
Howden aims to ensure that every SME client has access to cyber insurance. It will reach out to directly to prospects and will also collaborate with distributors such as local insurance companies, IT security firms and telcos.
Client Feedback & Improvements
Howden has received satisfactory feedback from the clients. “Our customers’ risk profiles are different, but their needs are similar across the globe, they understand that cyber risks are an important potential disruptor for their operations, but they were lost with the complexity of cyber insurance and key coverage. We want to bring the best of local and the best of global to our clients.”
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