Selling Cyber Liability Insurance and its Challenges

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.

Pricing Uncertainties

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.

Emerging Technologies

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.

Conclusion

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.

--

--

--

Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Choice Coin DAO Vote 3

SubQuery ‘s TGE is coming

What is KYVE

{UPDATE} Funny 21 - Juego de cartas Hack Free Resources Generator

iOS 14: A new challenge for marketers

Fractal Joins Forces with SINE Foundation to  Solve Data Privacy & Data Sharing Dilemmas

The Data Diaries Blog: The Importance of Big Data in Cybersecurity

Coinsbit India to support Binance Smart Chain Euler hard fork

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Agency Height

Agency Height

Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.

More from Medium

The Trail to Earth Day

Shimano Vs Microshift Gear: Is Shimano Better? 3 Reasons…

Interdenominational Civil Rights Trip

I was a Healthy 24-year-old Digital Nomad. Then I was Hospitalized with “Long COVID” Complications.