Clients should focus on both security and insurance simultaneously as they rise to meet the challenge posed by cyberattacks, an expert has said.
Speaking to Insurance Business, Sarah Stephens, head of cyber, content and new technology risks at JLT, said that some firms find their bow into cyber security and insurance daunting but should not put off purchasing cover.
“It can appear to be a really difficult thing to figure out for some businesses when they start the journey of thinking about cyber risk transfer,” Stephens told Insurance Business.
“They think how does that [insurance] sit into cyber risk management overall? They think they need to get their security to a near perfect level before they can even pursue insurance.
“It doesn’t have to be that you get to perfect and then you are ready to show yourself to the cyber insurance market - it is almost more important to have that risk transfer in place when your security level is lower.”
Stephens said that rather than focusing on perfecting their mitigation and waiting to purchase insurance, businesses should look to place cover and build-up their security portfolio at the same time.
As a broker, Stephens said that explaining where a business currently sits in terms of its mitigation and security and continuing to go back to underwriters as strategies change and mitigation measures are put in place is critical.
“Certainly, cyber insurance underwriters have become more and more sophisticated and their expectations continue to grow in terms of what good looks like,” she said. “You increase your ability to get broader coverage, lower excesses, and better premiums the more you invest in thoughtful cyber security measures.”
Stephens said that insurance and security can work better together through innovative partnerships that see insurers, brokers and cyber security firms offer products in tandem. Highlighting as an example Allianz Global Corporate & Specialty’s tie up with cyber security firm Zeguro, which outsources the role of a chief information security officer for SMEs, Stephens said that insurance and security can “work hand in hand together” to protect clients.
