FCI Shares New Model to Improve Commercial Cyber Insurance Loss Ratios at InsureTech Connect, Las Vegas
For a sustainable and robust cyber insurance market, commercial insurance brokers will need to promote and facilitate pre-claim cyber protection and compliance for policyholders.
LAS VEGAS (PRWEB)
September 21, 2022
FCI, a financial services-focused MSSP, is eager to share a new pre- and post-breach risk management model that synchronizes post-breach forensics and eDiscovery with security assessments, cyber programs, controls and compliance before violation. This pre-breach preparation enhances a company’s ability to reduce the scope, timing, and cost of claims.
In May 2022, fitch reviews reported that “cyber claims have increased 100% per year for the past three years. As a result, claims closed with payment increased by 200% per year over the same period. There is a clear and urgent need for change to address the growing sophistication of cyber threats and the frequency of attacks. Additionally, ongoing regulatory requirements have created a changing landscape for the insurance industry. The cost of claims and forensics after the breach is unsustainable as denials increase and premiums increase to compensate.
Brian Edelman, CEO of FCI, said, “For a sustainable and healthy cyber insurance market, commercial insurance brokers will need to promote and facilitate pre-claim cyber protection and compliance for policyholders. Along with this, cyber insurers and reinsurers need to tighten cyber ecosystem relationships and processes before and after the breach. Linking and linking domains before and after the breach will lay a solid foundation for success and will directly impact loss ratios.
NYDFS Insurance Circular Letter #2, 2021, further supports this type of model by mentioning that key stakeholders in the insurance value chain will need to “consider the systemic risk that occurs when a widespread cyber incident damages many policyholders at the same time, potentially overwhelming mass loss insurers. They went on to say, “Insurers that do not effectively measure the risk of their policyholders also risk insuring organizations that use cyber insurance as a substitute for improving cybersecurity.
Responsibilities and Elements of FCI Pre and Post Breach Cyber Insurance Model To understand:
- Carriers and brokers: Adopt a pre- and post-breach risk management model
- Brokers: promote and facilitate pre-claim cyber protection and compliance with policyholders
- Policyholders: Commit to Protection and Compliance
- Pre-Breach Managed Security Service Providers (MSSPs): Enforce and Prove Policyholder Protection and Compliance
- Post-Breach Enterprises: Perform eDiscovery and Forensics
- Carriers and brokers: reduction in claims, which improves loss ratios
About FCI Cyber
FCI is a NIST-based Managed Security Service Provider (MSSP) that offers cybersecurity compliance enabling technologies and services to CISOs and security personnel of financial services organizations with prescriptive regulatory requirements in matters of cybersecurity. FCI combines best-in-class technologies, cybersecurity best practices, expertise and innovation to perform security assessments and deliver cloud-based managed endpoint and network protection. http://www.fcicyber.com
Share the article on social networks or by e-mail: