In the last 20 years, we’ve connected everything of value in the world via the internet. It’s really astonishing if we think about it. It’s fundamentally changed EVERYTHING! Except, that is, insurance. We’re still selling fire and liability coverage’s and asking the same questions we have for decades. While we’re adopting digital technology we’re still mired in an analog mindset, because that’s how insurance was developed. Yes, there’s a burgeoning cyber insurance market, but in the overall scheme of things it’s miniscule compared to the total of commercial premiums.
This simply can’t last for long folks! The worst perils are now ‘cyber risks’, in fact, cyber insurance is the future of insurance.
They tell us everything we make in the future will have connectivity built into it, but think about it, we’ve already connected everything of value. 100 years ago we connected water to our buildings, then power, then the telephone, and pretty much that’s how it was until cable arrived and now look at the buildings we’re in and what we do inside. Technology has changed transactional activity for every organization and individual, and everything is connected in some way to the internet. Remember that the Target data breach was from a wireless controlled HVAC switch.
Here’s some really good news; the future is already here! It’s right under our noses, fingertips actually, just like everything else!
There’s a robust and growing cyber insurance market; it’s surprisingly exciting (to an insurance junkie) to realize all the options and new forms of coverage that are already available. Every agent has access to cyber products, although most will tell you they sell very little. And that’s perhaps the most worrisome risk for us in the industry. We’re not doing a good job of identifying our customer’s exposures and matching them to insurance products and risk management services. Nor are we convincing them about the value of cyber insurance.
Before it’s too late and we discover we didn’t buy enough E&O to leave our customers uninsured for digital perils, Agents need to jump start their cyber awareness. We must acquire cyber risk management knowledge and skills, start navigating the complicated world of cyber insurance policy forms and language, and adopt a continuous learning posture about the perils of digital technology.
If you’ve read any of the other articles on this blog you can’t help notice they all say essentially the same as this one – so my apologies if you were looking for something new. We do have new cyber Resources, connect with the ARM Ohio office for information.
If you’ve not yet considered taking the Cyber Insurance Training course (cyRM – Cyber Risk Manager), do it soon! Agent graduates report it’s been essential to their cyber insurance education, and for most the post-graduation Resources now form core elements of their cyber insurance practice.