Resilience introduces modular cyber insurance policies

Cyber insurance company Resilience has announced the launch of a new process for modular policy production, making it the first company to adopt modularity for cyber insurance.

Unlike traditional cyber insurance policies, which can be complicated and difficult to amend, modularity allows brokers to offer customized policies with negotiated coverages specific to a client’s exposure. Customizing coverages in a traditional cyber policy requires either full redrafting or endorsements that can make it difficult to understand what the policy actually covers, Resilience said. These modifications can take days or weeks.

Modularity enables policy amendments to be updated immediately and reflected in line with the policy. The process enables broker-specific versions that are endorsement-free yet amendment-friendly, with clear language, fewer pages and tracked changes.

“Cyber risk is complex and can be complicated, but the policy document doesn’t need to be,” said Sam Lisi, product director at Resilience. “This modular policy provides not only clarity for the insured who is reading the policy, but contract certainty for our brokers and their clients in the ever-changing cyber risk environment.”

Read next: Resilience Cyber Insurance Solutions makes seven key hires

The company’s process for modularity includes three layers:

• Smart assembly of policy content: Based on the underwriter’s insuring agreement selections, only the content that is relevant will be added to the policy. This allows Resilience to continuously introduce new insuring agreements in response to changing market conditions without the need for policy refreshes or amendatory endorsements
• In-line policy amendments: These allow the underwriter to select from a pool of existing amendments without dealing with the confusion that can come from higher volumes of amendatory endorsements. The pool of in-line policy amendments can be expanded easily
• Dynamic text fields: Open text fields that can be populated with a variety of inputs. They are amended so frequently that it makes more sense to leave them open for underwriter input rather than hard-coded with fixed options that may be insufficient, Resilience said

“Every risk is unique,” said CJ Pruzinsky, Resilience’s chief underwriting officer for North America. “Our modular policy streamlines the process for brokers and their clients, allowing for a clear, easy-to-read policy document. It sounds simple, but this is game-changing.”