Despite cyber liability insurance being a massive opportunity for insurance agents, it comes with some challenges. Merely acknowledging these challenges will not help insurance agents move forward. The growing need for cybersecurity and cyber liability instances has increased the demand for cyber liability insurance. Therefore, this article intends to analyze some of these challenges and provide solutions for independent agents.
Since this business line is young, and not many insurers have experience in offering adequate cyber insurance policies. The main challenge lies in estimating the extent of loss and underwriting the business interruptions caused by cyber liabilities. Therefore, price uncertainties are a huge challenge for agents when consulting with clients.
Make sure to understand your customer’s business scale, analyze the potential parties at risk, discuss your clients’ priorities, and scan through the market to identify the insurers that provide the best possible solution.
There are emerging cyber risks brought about by ever-evolving technologies. Smart technologies are a growing way of life today.
A solution is to stay updated on the emerging cyber risks posed by technologies. Engage yourself in a platform that can identify and analyze these risks. To get more knowledge about trends in this particular line of insurance and the trending demands of cybersecurity insurance consider joining an insurance aggregator. You might find it easy to create just the perfect policies for your clients in an agency.
Evolving legal infrastructures
Legal provisions and policies for cybersecurity keep changing on an as-needed basis. It would be best to understand how the cybersecurity reforms fit in to control the emerging cyber risks.
According to the National Conference of State Legislature (NCSL), at least 38 states have introduced over 280 resolutions to deal with cybersecurity in the US. The resolutions included addressing cyber liability insurance, increasing penalties for computer crimes, and regulating cybersecurity in the insurance industry. The reform was set to implement training to make incidence response more prompt and better and to pay extra attention to specific crimes.
Cybersecurity poses one of the most considerable risks for any business. From a client perspective, the need for cyber liability insurance is clear and rapidly growing. There’s a massive untapped market for insurance agents like you that you can prospect and boost sales.
While you explore this arena, remember that only understanding your clients’ needs will help little if you ignore the evolving landscape of cyber risks and threats. Pay close attention to the changing legal infrastructures. Once you are well-informed, you will find a hidden treasure in your existing market.