Brokers need to change the way they sell cyber insurance and focus on preventing cyberattacks in the first place, a cyber insurance provider suggests.
A cyber claim can be terminal for a business, Vishal Kundi, CEO and co-founder of Toronto-based cybersecurity and insurance specialist BOXX Insurance, told Canadian Underwriter.
“If you think about a cyber incident as being a ‘digital iceberg,’ there’s no point in insurance saying, ‘If you hit it, we’ll be there for you.’ It’s about not hitting the iceberg in the first place,” Kundi said.
Many brokers find it increasingly difficult to sell cyber insurance and improve the customer experience, Kundi said, since cyber is “daunting to understand” for many.
“That’s why it’s important for brokers to become a lot more confident in talking about cyber to their customers. You can sell the best insurance product on the market, but what’s at stake here is the survival of your client’s business. This is an insurance claim you never want to happen,” Kundi said.
With this in mind, selling cyber needs to become about risk management and how clients can avoid claims, he added.
Brokers need to provide tools…
