Brokers ‘should rethink sales strategy’ to bridge cyber gap
Cybersecurity specialist Arctic Wolf says brokers who work to improve their knowledge of the cyber risk landscape will help secure necessary protections for uninsured clients wary of rising premiums.
Despite the increasing prevalence and cost of digital attacks, the firm says only 25% of businesses are insured.
Arctic Wolf ANZ Regional Director David Hayes attributes the statistic to soaring premiums, which have gone up by as much as 80% in the past two years.
Rising prices have been chalked up to vulnerabilities presented by remote work, enabling increased entry points for hostile actors, and the escalating cost of ransomware attacks.
Mr Hayes says it’s up to brokers to adapt to the current market conditions and “rethink their sales strategy to get businesses protected”.
“Just like the car insurance industry, there are many variables that go into the price of cyber insurance, and Australian cyber insurance brokers are having to adjust their strategies as those variables shift,” Mr Hayes said.
“The good news is that there is a large opportunity for brokers who can assist organisations to become insurable.”
He says brokers should look to utilise education initiatives like the Federal Government’s new $23 million Cyber Wardens Program to help small businesses improve their protections and insurability.
“Insurance providers are pickier about their requirements to insure,” Mr Hayes said.
“Companies are more willing to take on cyber risks ‘out of pocket’, so brokers offering low prices or great coverage may not be enough to sway them. They will also need to be knowledgeable about cyber protection solutions.”
He says brokers who enhance their knowledge of cyber security, penetration testing and identify valued services will be the ones who will “come out on top”.
“Brokers that deeply understand their client’s risks will be able to make better security suggestions and help their clients become insured.
“They will become a key part of security software sales and marketing and also serve as a cybersecurity risk assessment adviser for organisations seeking coverage.”