Differentiate Your Information Security Offerings
The cyber security industry is broken. Uptake rates on cyber insurance via retail channels remain low. For these reasons, alternative channel distribution of excess cyber insurance capacity makes sense. Less than 3% of cyber security software vendors guarantee product performance. The primary reason for low cyber insurance uptake rates is the lack of exposure and product understanding on the part of retail agents and traditional financial (CFO) property & casualty insurance buyers. Distribution of cyber insurance directly to executives making IT purchases, who comprehend the exposures at hand, is a more logical approach in many circumstances. For cyber security product vendors and buyers, cyber insurance is the final part of the risk management equation and can be discounted or subsidized by resellers.
The cyber security is an $80 billion dollar business where all sales are final. Imagine if a customer had endpoint security, firewalls, email security and web security, all backed by a guarantee. We work with a variety of information security providers to support performance guarantees to help them differentiate their products based on performance quality as opposed fancy marketing propaganda. With the direction and close recommendations by our Advisory Board, we are pioneering insurance solutions to enhance your ability to stand behind your products.
We offer a turnkey solution for Infosec vendors including warranty design & drafting, creating an efficacy profile submission, underwriting terms & conditions, warranty marketing, policy issuance and ongoing support as needed.
For MSSP’s: Cyber Insurance-as-a-Service™
Identify, quantify, eliminate, manage…the risk management process right? All that is left is standby financing and available claims experts to respond if something slips through despite your best-in-class security infrastructure.
For small to middle market organizations, the use of external third party information security support services such as managed security providers is a key strategy to mitigate cyber risks. The only thing missing from managed security service offerings is cost effective financing of isolated and possibly catastrophic events. Some InfoSec vendors think rounding out services with cyber insurance will differentiate their services in a very crowded market resulting in improved new business and customer retention. If properly designed, incorporating a level of cyber coverage within the security services offering will result in better-educated buyers, painless application process, lower rates, and better coverage outcome
A cyber insurance product imbedded into a security service offering is possible and need not be overly complicated. If designed properly, a successful program does not require vendor licensing, additional internal resources or material product “touch” by the vendor. The volume of premium generated by a single InfoSec provider will also reduce premium costs for customers our view, cyber insurance is the last piece of the security risk management (and finance) puzzle.
The ability to include a cyber insurance policy differentiates your security offerings and will help you close more deals. A variety of structures are available to best match your customer profiles.
If our concepts can help you close more deals, give us a call.