A cyber insurance broker helps businesses find the right policy to cover them for a cyber incident at the right price. Unlike insurers, a broker is an independent entity that represents their client’s best interests by comparing policies, exclusions, and wordings, and negotiating pricing on their behalf. A specialist will build tailored polices to tackle real cyber risks like ransomware, supply chain disruption, regulatory fines, and potential business interruption.
What does a cyber insurance broker do?
The traditional broking model is as old as time, which is acceptable for the major commercial lines of insurance that have remained unchanged in their complexity. Traditionally, the broker works with the client to understand their risk, relays that information to the insurer who assesses the risk, applies existing pricing models to determine the price, and communicates the result back to the client via the broker.
But there is no standardised process and pricing model for cyber insurance. Cyber threats are evolving at a very fast pace, and high-profile attacks are regularly making national headlines (over two-fifths of UK businesses suffered a breach or cyber attack last year, according to the government’s most recent annual report). Cyber has become an unpredictable risk.
The insurance broker is therefore required to fulfil an ever more critical role in supporting clients. Your risk profile is unique, and you need someone who understands your business. It’s imperative to truly understand the client’s unique and complex IT estates and translate these insights into detailed submissions in a way that insurers can understand, ensuring there are no nasty surprises in coverage.
A specialist cyber insurance broker needs to embed themselves in the claims process from day one. This means providing simulated worst-case scenarios, outlining what the first 24 hours of a claim look like, and the technical understanding to serve as a second pair of hands should the worst-case scenario ever happen.
The case for a specialist cyber insurance broker
| General insurance broker | Cyber insurance broker | |
|---|---|---|
| Understanding of technical estate | Standard questionnaires sent to technical teams | Takes the time to understand your full security posture |
| Incident response | Insurers’ panel of incident responders | Insurers panel in addition to In-house capability to help plan for, and react to, a cyber incident |
| Access to markets | Access to full market of insurers | Incentivised to approach full market of insurers |
| Time to broke a cyber policy | Two months | Two – Three weeks end to end |
Questions to ask yourself when choosing a cyber insurance broker.
- Does the cyber insurance broker understand my IT estate?
- Is the cyber insurance broker FCA regulated?
- Does the cyber insurance broker have an international footprint?
- Are they a Lloyd’s accredited broker?
- Can they help improve my IT estate?
- Is the cyber insurance broker capable of being a technical sounding board?
- Are they able to provide case studies and significant savings from other businesses?
- What is their claim process like, and how involved are they in the process?
Why you should consider Assured as your cyber insurance broker.
It’s time to start asking more from your insurance broker. In our advanced, tech-driven world, cyber threats are evolving at speed. That’s why it’s vital to have a cyber specialist broker like Assured, able not only to get into the weeds of your security stack and drive down policy price, but also with the capability to technically support you both before and after a cyber event.
FAQs
What does a cyber insurance broker do?
A cyber insurance broker works closely with a business to assess risk and negotiate with different insurers to obtain the right level of coverage for the lowest price. A specialist will be able to provide support during claims.
Why use a broker instead of going direct to insurers?
A broker will approach multiple insurers on your behalf, which means competitive pricing, tailored policies and additional services.
Are cyber insurance brokers regulated in the UK?
Yes. All brokers must be regulated by the Financial Conduct Authority (FCA), however, some brokers (like Assured) are also accredited Lloyd’s brokers.
How do I choose the best cyber insurance broker in the UK?
Choose a broker that is FCA regulated, understands mid-market businesses, and will support you during a claim. The best brokers are independent, not tied to one insurer, and have demonstrable case studies and proven savings.
Can a broker save money on cyber insurance?
Yes. Cyber insurance pricing is varied due to the growing, systemic nature of the attack surface. By approaching the whole market, a broker will drive competition for pricing.