As the world becomes increasingly digitally oriented, insurance agents must be aware of and understand how to offer cyber insurance to businesses. With more businesses than ever going online and adding touchless choices into in-person experiences, businesses, and the insurance agents who serve those accounts, must understand the risks of cyber assaults and how to defend themselves.
New forms of attacks continue to emerge, and hackers continue to devise new methods for stealing data, infecting machines with malware, encrypting data with ransomware, and more. Insurance agents have a chance to learn how to offer cyber insurance to business owners against this backdrop.
In terms of prevention, cyber insurance cannot provide the same level of protection as anti-malware software. However, when cyberattacks do occur and inflict damage, cyber insurance can help to mitigate the consequences by covering costs such as data recovery, legal responsibility fees, and lost revenue as a result of the attack.
Is cyber insurance profitable?
Even as ransomware assaults increase, speakers said Thursday at the Insurance Information Institute’s Joint Industry Forum 2021 in New York that cyber insurance is expected to grow since it has been mainly profitable for insurers and is viewed as insurable by reinsurers.
They also advocated for the federal government to play a bigger role in the cyber insurance industry, particularly in terms of information exchange.
According to Paul Miskovich, chief underwriting officer of Evertas Inc., a crypto-asset and blockchain-related risk underwriter based in New York, insurers will write $28 billion in cyber insurance gross written premiums by 2026.
Insurers will continue to write cyber insurance, according to Mr. Miskovich, because it is generally profitable. “For most insurers, it’s been profitable practically every year in the marketplace,” he said.
Reinsurers are committed to the cyber sector, according to Catherine Mulligan, global head of cyber for Aon PLC’s Reinsurance Solutions unit in New York. She also mentioned that Aon is witnessing several new reinsurers considering a limited market entry. According to her, reinsurers have made certain capacity modifications as they have a better understanding of the industry.
According to Chris Beck, managing director of Milliman Inc.’s cyber risk solutions practice group in Chicago, while cyber insurance has been beneficial for the insurance sector, ransomware has been highly profitable for criminal actors. “We’ve observed a significant surge in ransomware assaults since they are profitable for attackers.”
Cybercriminals are also getting more automated, according to Ms. Mulligan, increasing the number of potential attacks and losses.
Moderator Dale Porfilio, chief insurance officer for the Insurance Information Institute in New York, opened the discussion by questioning if the government can play a role in cyber insurance, using the governmental participation in flood and terrorist insurance as examples. “We’ve arrived at that stage,” he explained.
“Mr. Beck claims that the government has more information than any firm and has intelligence operations that “no company” can equal or imitate.
Ms. Mulligan called for enhanced information sharing among stakeholders, and suggested that the government should help by establishing a central repository for aggregated data. “She stated that “greater information” is needed by actuaries in order to make more educated decisions concerning cyber hazards and underwriting.
Mr. Miskovich went on to say that data standardization may make information exchange easier, and that the industry should embrace it “I am in favor of any and all prospects for data standardization.”
The Insurance Information Institute was purchased by The Institutes, a Malvern, Pennsylvania-based supplier of risk management and property/casualty insurance education and research, last year.
How do I start a cyber security insurance company?
Someone must trust you to complete the task correctly before they will hire you. A bachelor’s degree in information technology, computer science, or a related discipline indicates that you have the necessary skills to launch a cybersecurity or IT-related company.
However, degrees do not provide the practical experience that clients seek. Certifications are another technique to establish credibility and demonstrate that your talents are useful and relevant.
- The EC-Council gives the Certified Ethical Hacker certification to cybersecurity experts that test networks or systems and hunt for security flaws. The exam costs $100 and takes around four hours to complete. It has 125 questions.
- Global Information Assurance Certification (GIAC) offers the GIAC Security Essentials Certification (GSEC), which verifies IT professionals’ expertise of information security. It takes roughly five hours to finish the test, which includes 180 questions and costs $150.
- The (ISC)2 certifies you as a Certified Information Systems Security Professional (CISSP), demonstrating your ability to plan, manage, and maintain a successful cybersecurity program and security systems. The exam is limited to 150 questions, lasts three hours, and costs $699.
- The (ISC)2 now offers the Certified Cloud Security Professional (CCSP) certification, which demonstrates to potential clients that you have the expertise to develop, maintain, and secure cloud data, applications, and infrastructure. This exam costs $599 and takes four hours to complete. It has 125 questions.
- CompTIA Cybersecurity Analyst (CompTIA CySA+): The CompTIA CySA+ exam evaluates candidates’ threat detection skills, data analysis and interpretation abilities, and capacity to identify security concerns. The exam lasts just under three hours and includes up to 85 questions. It costs $359.
- The Certified in the Governance of Enterprise IT (CGEIT) credential from ISACA validates the capacity of exam takers to audit, govern, and secure information systems. The exam costs $760 for non-ISACA members and $575 for ISACA members. The exam is four hours long and consists of 150 questions.
- ISACA also offers the Certified Information Security Manager (CISM) certification. This certification verifies that you possess the necessary technical skills to manage information systems and IT security. Nonmembers will pay $760, while members will pay $575. It has 150 questions and will take you four hours to finish.
While skills and certifications are important, they are only one part of a successful cybersecurity startup strategy. You must also develop and implement a business plan.
How do I sell cybersecurity solutions?
We spoke with professionals to learn how they presently offer cybersecurity and information security goods and services to their clients.
Understand the requirements of different industries
Different sectors have their own set of standards and compliance regulations to adhere to. For example, the security procedures that a healthcare organization must follow are vastly different from those that a law firm or accountant should consider.
Your offer will most likely differ depending on who you’re selling your cybersecurity services to.
As a result, it’s critical for cybersecurity companies to understand the verticals in which they market.
You know more about security than they do, so research the laws and regulations for yourself. Find out what particular firms are needed to do, and whether their location has an impact on what is required.
You can construct Smart Views in Close, for example, that automatically group leads together depending on your criteria. As a result, you can establish divisions based on industry, region, or any other significant feature. You may quickly change and amend those criteria, and your dynamic lead lists will update in real time.
Build and maintain a wide network online and offline
Your prospects are continually inundated with messages from a variety of sources, some of which are genuine and others which are spam.
So, how do you get others to pay attention to you? In a world of’spammy’ security messaging, how can you stand out as a legitimate solution?
It’s critical to be real whether you’re building your network online or offline. If you’re a salesperson who isn’t. You sell your prospect on yourself by selling nothing.
“Apozy’s Rick Deacon adds, “Genuine, valuable information and good dialogue can lead to a new client.” “The issue is that individuals are often phony and’market-y,’ and it doesn’t work for them. It’s crucial to be someone who others want to talk to.”
Provide material that starts fresh dialogues and helps you extend your network to draw your audience to you. Make yourself the person people want to speak with.
Become an educator and security consultant
You’ll be in a better position to educate your prospects after you understand the various security standards that different sectors must follow.
Many firms are unconcerned about protecting themselves from cyberattacks, but they recognize the necessity of adhering to regulatory rules. They’re probably aware that they’re not well-informed.
That’s where you, as the hero, come in: you can assist them cut through the legalese and figure out what’s really expected of them.
You establish yourself as an information security specialist by serving as an advisor and lecturer. This strategy helps you create trust with your prospects, and they’ll likely recognize they need your support on their own.
Ask questions that reveal needs they didn’t know they had
So, rather than trying to persuade or persuade your prospects that they require better security solutions, ask them questions to enable them arrive to their own conclusions. You could, for example, ask queries like:
You can help your prospects recognize they aren’t entirely prepared for the hazards by discussing these and other questions.
Focus on how your product enables their business
Remember that fear tactics will not work in real life. Instead of using fear to sell your goods or service, utilize value.
As a result, you’ll be able to focus less on what you do and more on what it accomplishes for them.
In the field of cybersecurity, use cases and case studies can be extremely useful. Because your prospects may not fully comprehend their demands or what they can achieve with your product or services, it is your responsibility to offer them real-world instances of the outcomes they could expect. This is a great storytelling technique that can assist you in closing more business.
Use use cases that are relevant to their industry to help them reach that “aha” moment.
Keep their priorities in mind
When it comes to security, each company has its own priorities and objectives. Perhaps they wish to give their consumers more trust by adopting infosec products or services to better protect their data. Perhaps they don’t want to get fined if they don’t follow the rules. Perhaps they’re looking for ways to keep a newly remote crew safe.
Before you start pitching, you should figure out what this prospect’s top priorities are.
Consider how you may begin your pitch by emphasizing the need of printer security. After a few minutes of talking, you learn that this prospect has lately transferred the bulk of their teams to the cloud and has eliminated the majority of their printers. Security solutions for their remote staff were what they really required.
Instead, concentrate on their priorities first, then build your proposal around their company. This will not only save you time and efforts, but it will also increase your chances of piqueing their attention.
Don’t be afraid to be vulnerable
If your prospects are familiar with cybersecurity, they understand that there is no such thing as 100 percent security. If that’s all you have to offer, you’ll quickly lose any trust people had in you.
Pretend you’re a silver bullet who can solve any security issue that arises. Even if a prospect isn’t familiar with cybersecurity, they’ll recognize that something that seems too good to be true almost always is.
So, be truthful and true to yourself. Make it clear to your prospects that perfect security isn’t a realistic aim. Demonstrate how you can assist them in anticipating dangers and being prepared to fight or respond to cyberattacks. In sales, practice radical candor.
While many of the recommendations we’ve mentioned apply to both service and product-based organizations, SaaS companies can use certain special approaches to improve their sales process. Also, have a look at our comprehensive SaaS sales guide.
What is cyber insurance market?
Cyber insurance, according to Cisco, McAfee, and Cyber Insure One, is an insurance policy meant to protect businesses and individuals from cybercrime and cyber dangers. The covered business can recover for losses incurred as a result of a cyber incident and seek recompense from those who have been harmed.
Do small businesses need cyber insurance?
“Small business owners should question themselves what types of data they hold and where it lives,” says Sofya Pogreb, chief operating officer of NEXT Insurance, when reviewing insurance needs and determining if cyber insurance is necessary. Cyber liability insurance is required for every company that uses a computer or mobile phone, accepts credit cards, or maintains sensitive data in the cloud or on an electronic device.” Information on clients, staff, or the company’s finances are examples of sensitive data.
Does cyber insurance pay ransom?
Ransomware, often known as cyber extortion, is a sort of malicious software that infiltrates and shuts down computer systems. Typically, encryption is used to hold the data or system hostage until payments are made or other demands are met. The hacker instructs the victim to pay a quantity of money (ransom) to recover access to the device or data after the data or system has been frozen. Ransomware is a sort of cyber-attack that may infect computers of all kinds, including desktops, laptops, tablets, and smartphones. The hackers’ purpose isn’t to destroy or permanently encrypt the data, but to ensure that the ransom is paid quickly.
Ransomware attacks are on the rise and will continue to be a growing danger in the near future. Small enterprises will account for 50 to 75 percent of ransomware attack victims by 2021. Small businesses are prime targets because they often spend less on security, making it easier for hackers to get access to their systems. State insurance regulators are concerned about the risk of businesses and individuals being targeted by ransomware attacks, and they advise the public to take precautions. Consider purchasing a cybersecurity insurance policy as one of the first steps. Ransom money, extortion-related fees, and repair costs are all covered by many cyber policies. However, you must contact your insurer before paying a ransom; otherwise, you may not be covered.
Background: According to the FBI, the Internet Crime Complaint Center (IC3) received 791,790 complaints in 2020, totaling $4.2 billion in reported financial damages. There were 2,474 ransomware complaints out of the total, with total losses of over $29 million. This is an eight-fold rise from the previous year. “Business detections of ransomware jumped 365 percent from Q2 2018 to Q2 2019, the survey revealed,” according to TechRepublic, “while consumer detection declined by 12 percent.”
Every year, the number of people and businesses at danger grows. Individuals, government agencies, hospitals, and commercial enterprises can all be targets of ransomware. Municipalities have been hit by ransomware in the last year. The majority of ransomware is distributed via phishing emails that resemble a real organization in order to obtain personal information from the receiver.
Although the desire to pay the ransom is strong, the FBI warns that doing so comes with its own set of dangers. After the ransom is paid, there is no guarantee that the data will be returned. Demands for ransom can be extremely expensive, and they are on the rise, with typical demands jumping by 500 percent from 2020 to the first half of 2021. In addition, the average ransomware payout is rising, from $312,000 in 2019 to $570,000 in 2020. Cyber insurance premiums that cover ransomware payouts are also rising, with double-digit monthly hikes in the first quarter of 2021.
There’s also evidence that ransom victims are frequently targeted again as hackers share knowledge about successful assaults. According to a Cybereason report from 2021, 80% of businesses that paid a ransom were thereafter targeted by a second attempt.
The majority of ransomware demands demand payment in digital currencies such as bitcoin, the world’s largest cryptocurrency, or virtual money that is not produced or guaranteed by any government. These currencies are popular among criminals because they are simple to use and allow extortionists to stay anonymous. Demands can be as low as a few hundred dollars or as high as tens of millions of dollars. Many firms that have been the victims of well-publicized ransomware attacks have suffered reputational and consumer confidence damage.
Although many jurisdictions have laws requiring businesses to notify customers if their data has been accessed or stolen, it’s not always obvious whether ransomware assaults are subject to the same standards. As a result, many ransomware attacks go unnoticed.
Ransomware is covered by several cyber insurance policies. Other business plans, such as business interruption or extortion coverage, may also cover ransomware-related damages. Individuals or companies with lax cyber security measures are frequently seen as easier targets than, say, banks, which have more sophisticated digital infrastructure and encryption. Strong data backup and security policies can thus act as a deterrent to this form of cybercrime.
The government and the private sector are both working hard to combat the growing menace of ransomware. The Insurance Data Security Model Law was adopted by the NAIC during its Fall 2017 National Meeting. The model’s goal is to “create standards for data security, as well as investigation and reporting of a data security violation.” Eighteen states have embraced the concept as of August 2021. The Insurance Data Security Model Law only applies to insurers, so keep that in mind.
The NAIC membership announced the formation of a new standing committee on cybersecurity by the end of the year at the 2021 Summer National Meeting to monitor advancements in this field.
For the Health Insurance Portability and Accountability Act, the US Department of Health and Human Services released a brochure on ransomware (HIPAA). Consumer and corporate information on how to avoid ransomware attacks has been provided by the Federal Trade Commission and the Department of Homeland Security.
How much does it cost to start a cybersecurity company?
An initial investment of $100,000 to $350,000 is recommended by industry experts. For the first year, this budget covers all upfront costs, as well as payroll and recurring expenses, while you attempt to bring on paying clients.
How big is the cyber insurance market?
According to MarketsandMarketsTM, the cyber insurance industry is expected to increase at a 21.2 percent annual rate from $7.8 billion in 2020 to $20.4 billion in 2025.
How do I get cyber security clients?
1. Ads
When it comes to digital marketing for cybersecurity organizations, we must remember that ads must resonate with clients’ cyber problems and highlight safety solutions in order to capture readers’ interest and direct them to your website.
Brand awareness is aided significantly by online ads. With technology improvements, these advertising have gained new capabilities such as the ability to target the proper portion of the audience with high purchasing behavior, hence increasing ROI.
Bidding on online ads and producing eye-catching, click-worthy animated commercials both require a certain set of skills and experience. It is preferable to hire a cybersecurity marketing firm to handle it.
It is one of the most important venues for your visitors to learn about your services and products. Visitors can be converted into leads by sharing an educational, in-demand piece of content in exchange for their contact information.
Just like your firm is concerned about the security of businesses through cybersecurity, Google is concerned about the security of user data acquired on a website through GDPR compliance standards.
Consult a web developer or a cybersecurity marketing agency to learn more about this. The use of Google Analytics on a website allows you to track visitor information such as their interests, length of time spent on the site, reading habits, and location.
3. Blogs
When potential customers use search engines to look for solutions to their problems, they will come across content known as a blog on a website. If the material of this site meets their needs and provides them with the required answer, there is a good probability they will return.
Blogs aid in the generation of high-quality leads by increasing visitors to a firm. To achieve this, your blog must appear on Google’s first three pages, outranking millions of entries on the same subject by satisfying Google’s 200+ algorithms!
It’s a difficult profession that demands perseverance and consistent effort. You can either engage a content writer and SEO professional in-house or pay a cyber security marketing business to do it for you.
Use the visitors list you obtained from the site’s landing page as an email list to inform them about your service, upcoming updates, offers, and discounts. The most up-to-date email automation tool that may be used in conjunction with a cybersecurity marketing campaign.
Send them emails educating them on cybersafety and informing them of challenges they may face due to a lack of cybersafety. Lead nurturing emails are used to encourage leads to take action on a service or product.
- Leads that are actively cultivated by marketing result in a 20% increase in sales opportunity.
5. Use of social media
The essential idea of social media is’sharing is caring.’ Brands share their curiosity-driven content, which educates, excites, and entertains customers while also providing them with essential information. This results in a dedicated fan following.
People want to see openness and proof of achievements, so broadcasting successful testimonial films can help establish confidence. Keeping up with social media audiences on a daily basis improves engagement, which leads to more followers and leads.
As a result, community-building strategies such as Youtube, Instagram, and Facebook are critical for scaling customers, receiving feedback, and increasing income. A cybersecurity company’s Digital Marketing strategy must include it.
Podcast No. 6
One episode of a podcast is preferred by 50% of listeners on a weekly basis. “Hindi podcast on Anchor has grown 1,100 percent year over year,” Spotify claimed.
Podcasting will be a digital marketing bonanza for cybersecurity firms in the future.
People are compelled to multitask in today’s fast-paced world. A podcast is an audio file that can be listened to while performing daily duties and allowing knowledge to enter the mind.
How do I sell my security services?
Knowing your consumer is one of the most critical aspects in marketing security services. Who are you trying to sell to? Potential clients can be categorized into two categories: industry and size. If you’re marketing to a variety of industries, you’ll need to know what sets them unique from one another. The healthcare and finance industries, for example, have many more rules than a consumer goods company. Then there’s the issue of a company’s size.
You should be aware of these distinctions and how they may affect future consumer requirements.