Cyber Insurance And Today’s Threat Landscape: How to Achieve Alignment
Last year, the global cybersecurity insurance market was valued at $7.8 billion. The market is expected to continue growing at a staggering rate, up to $ 20.4 billion by the end of 2025 at a CAGR of 21.2%.
While cybersecurity insurance is still moderately new, demand for cover is increasing rapidly. Against a backdrop of rising cyberattacks and increased regulations, organizations are feeling the pressure to ensure they are protected against cyberthreats and data theft and loss.
Globally, over 154 countries have enacted cyber legislation that either mandates or strongly recommends cyber protection, including the need for insurance. For insurance providers, this is a rare opportunity for growth and innovation.
Cyberinsurance Cannot be Stagnant
Providing cover is not straightforward. Cyberattacks are not one-size-fits-all, making them harder to quantify from an insurance standpoint. Moreover, new methods of attack are constantly emerging. With causes ranging from human error to ransomware to identity theft, insurers must design extensive and agile policies to ensure they are providing sufficient protection.
Traditionally, insurers have provided cover on a sum-insured basis or conducted physical – and also time-consuming – audits. For the fast-moving world of cybersecurity, this is inadequate, either being inaccurate at the point of underwriting or outdated once completed and resulting in risk levels that do not match what has been logged.
To provide effective insurance, and claim their stake within this growing market, insurance providers must pivot their models to ensure that they can effectually assess cyberrisk. To do this, they must offer competitive price policies, manage risk of the policy portfolio continuously and also qualify legitimate claims and protect themselves from fraud.
Capgemini’s Global Cyber Insurance
Capgemini has developed a Global Cyber Insurance offer that gives insurers a competitive advantage in meeting and exceeding the needs of today’s organizations looking for cover. It combines our expertise in cyberrisk management and compliance, threat intelligence, and the ability to assess a client’s external risk posture in near real-time.
We are unique in our ability to harness digital insights to assist policyholders in understanding and improving their security posture. We also help insurance providers manage their insured portfolio effectively. We do this by addressing challenges across the entire cyber insurance life cycle: rapid risk assessments at the point of sale, tracking the risk posture of the policyholder throughout the insured period, and providing timely interventions to mitigate both the risk of a cyberattack and the likelihood of a claim being made.
Lower Risk, Higher Profitability
Using our heritage in technology and innovation strategy, we use tools such as automation and real-time data analysis to provide effective and dynamic cover. We automate the security risk assessment, using data analytics to evaluate multiple risk vectors and information from historical breaches associated with the potential policyholder. This not only significantly reduces the length of the risk assessment; it improves accuracy too.
As part of the onboarding process we provide a score report to the policyholder, providing details of security risks they are exposed to and recommendations on how to address these risks.
Once the policy is live, we help insurers to stay aware of a policyholder’s changing risk profile, in real-time, allowing for timely interventions that prevent security breaches and subsequent claims. By proactively evaluating threats, Capgemini offers 24×7 notifications, security news and security alerts with comprehensive, actionable intelligence.
If and when breaches do occur, Capgemini helps to sift through the ambiguity of pay-outs and claims. We assist insurers with a claim period risk report, detailing the risk posture of the policyholder. We also help insurers to identify the root causes of a breach and give guidance in setting up forensic direction.
In today’s digital world, cybersecurity risks are inevitable and complex. But cybersecurity insurance doesn’t have to be. Just as cybercriminals are using more intelligent solutions and tools, so too should insurance providers – enabling them to stay one step ahead.
Related: Here’s how Capgemini is working with cyber insurance carriers and policyholders.