Hack Day: How to sell cyber insurance

How to sell cyber

The key points from our webinar in which our panellists discuss everything you need to know about selling cyber products to clients.

Education is a big problem when it comes to selling cyber insurance, according to our expert panel.

Cybercrime is still seen as a corporate risk, which means that many SMEs do not believe they can be targeted.

“Cyber Insurance is not on the agenda for SME clients, because they don’t recognise the risks they have,” said Bob White, director at Petherwick Insurance Brokers. “We have to educate them, but we also have to educate brokers, because they lack knowledge in this field.”

Risk
Panellists also highlighted that “cyber” is a confusing title, as policies are more about data protection.

They agreed that the industry had made cyber too complicated and that brokers needed to break down difficult wordings and better explain both risks and policies to clients.

Meanwhile Michael Greenland, head of regional broker sales at Aviva, pointed out that there is a 50/50 risk that an SME will be targeted by cybercrime this year. 

“From an insurer stand point it’s not just about educating brokers, but also the clients,” he observed.

In addition Henry Sanderson, chartered insurance broker at Safeonline Insurance Brokers, noted that many SMEs will use outsourced service providers, such as Amazon, and that they also face the risk that these providers can be attacked.

Reputation
According to the panellists brokers need to tell their clients about cyber risks and make them understand that an attack can be costly.

“It’s not just about getting back up and operating again after a cyber breach – loss of data can be loss of reputation,” added White.

Sanderson encouraged brokers to be proactive and bring a cyber quote when they go out to see clients.

“Price is a sticking point, but now is the most affordable time to buy cyber insurance. It’s becoming commoditised, which is good for the clients,” Sanderson noted.

He added that SMEs needed to take a “holistic” risk management approach, stating: “They are now under attack and they haven’t been before. They need to see that.”

Products
The expert panel also discussed packaged commercial combined policies which include cyber, with Greenland stating these will be suited for a lot of SMEs.

However, panellists agreed that it is hard to do “one size fits all” and that the broker needs to know what the client needs.

If you missed this webinar but are keen to learn more, don’t worry! Register now as it will be available on demand shortly.
 

Panellists

Michael Greenland, head of regional broker sales, Aviva
Henry Sanderson, chartered insurance broker, Safeonline Insurance Brokers
Bob White, director, Petherwick Insurance Brokers

This session was moderated by David Worsfold, contributing editor, Insurance Age.

This panel session will soon be available on demand so check back shortly.

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