Cyber Insurance Renewal: A Guide to Easier and More Secure Renewals

Cyber insurance renewal can be a daunting task, but it doesn't have to be. The key is to be prepared and know what to expect.

Most cyber insurance policies have a renewal period of 30 to 60 days, giving you time to review and adjust your coverage as needed. This is a great opportunity to reassess your organization's cybersecurity risks and ensure your policy is aligned with your evolving needs.

Don't wait until the last minute to renew your policy. Review your coverage limits, deductibles, and exclusions carefully to avoid any surprises.

When you're looking to renew your cyber insurance, risk management is a crucial aspect to consider. Your cyber insurance provider can be a valuable partner in mitigating security threats.

Having a solid risk management plan in place can make a big difference in protecting your business from cyber breaches. Policyholders engaged with Corvus Risk Prevention Services have experienced up to a 20% reduction in the frequency and cost of cyber breaches.

Cyber insurance can provide you with access to expert advice and tools to manage security risks. Policyholders gain access to unlimited consultations with cyber experts, real-time intelligence on emerging threats, and easy-to-use tools to manage security risks.

Regularly reviewing and updating your risk management plan can help you stay ahead of potential threats. This can involve staying informed about the latest cyber threats and taking proactive steps to protect your business.

Cyber insurance premiums are calculated based on several factors, including an organization's score on a noninvasive IT security scan, revenue and nature of business, quality of cybersecurity controls, and the limit requested.

The average annual cost of cyber insurance for a business with $1 million in annual revenue is $1,485, based on a $1 million dollar liability limit with a $10,000 deductible.

Premium prices are increasing fast, with Standard & Poor's Corp. predicting cyber insurance premiums will increase on average 20-30% per year. Rate increases up to 60% are already not uncommon.

The cost of cyber insurance depends on the nature and size of your business and the state in which your business operates, as well as the steps you've taken to secure your business.

To give you a better idea, here are some factors that can affect your premium cost:

In fact, the quality of your cybersecurity controls is a significant factor in determining your premium cost. So, it's essential to ensure that your company has documented cybersecurity practices that are enforced, and that you have at least one team member assigned to actively manage cybersecurity and regularly ensure all networks, systems, and accounts are up to date.

Ransomware attacks, data breaches, wire fraud, and system failures are common incidents that trigger cyber insurance claims.

If you fall victim to a ransomware attack, your cyber insurance policy can help cover the costs of recovering your files and devices.

Ransomware attacks involve hackers locking up files or devices and demanding a ransom payment in exchange for release.

Data breaches, on the other hand, occur when confidential data is stolen or exposed by threat actors or human error.

Wire fraud happens when an employee is tricked into sending money to a scammer.

System failures due to shutdowns may or may not be malicious in nature, but they can still cause significant disruptions to your business.

Some common cyber insurance claims include:

To secure adequate coverage, make your cybersecurity profile as attractive as possible to the underwriters. This means taking necessary precautions to minimize your cybersecurity liability.

Multi-factor authentication is a critical component that cyber insurance carriers evaluate when determining coverage. It's also a simple step to take to boost your security.

An iron-clad incident response plan is another must-have for underwriters. This plan should outline the steps you'll take in case of a cyber attack.

Our cyber insurance policy covers a wide range of losses resulting from a security breach or cyber crime event.

First-party losses, such as income loss or digital asset loss, are covered under the policy.

First-party coverage includes business interruption, contingent business interruption, digital asset destruction, data retrieval, and system restoration.

System failure and cyber extortion and ransomware are also covered under first-party losses.

You'll also be protected from breach response and remediation expenses, as well as social engineering and cyber crime.

Third-party losses, which include amounts your company is legally obligated to pay to others, are also covered.

This includes network security and privacy liability, regulatory investigations, fines, and penalties, as well as media liability.

PCI DSS assessment expenses are also covered under third-party losses.

Here's a breakdown of what's covered under our Smart Cyber Insurance policy:

To secure coverage, you need to make your cybersecurity profile attractive to underwriters. This means taking certain precautions to protect your business, such as implementing multi-factor authentication.

Cyber insurance carriers evaluate various components when determining coverage, so it's essential to have an iron-clad incident response plan in place. Offline storage of backup databases is also crucial.

To minimize your cybersecurity liability, you should reassess your cybersecurity protections regularly, especially during policy renewal. Compare your protections to industry, regulatory, and compliance standards relevant to your business.

Consider completing new assessments, such as Penetration Testing and Security Audits of your Microsoft 365 or Google Workspace tenant, to gain valuable insights and inform future cybersecurity improvements.

Deploy additional protections based on your review and assessments, prioritizing changes that address higher-level, critical risks. Focus on demonstrating improvements and prioritizing the most likely and impactful risks for your business.

Review your original application and security declarations to ensure they're up-to-date. Document any changes in your cybersecurity protections, including new tools or updated procedures.

Security Training is a crucial aspect of securing your business. Your employees are your first line of defense, so it's essential they can recognize suspicious emails and other potential threats.

Having up-to-date enterprise technology is great, but it's no substitute for well-trained employees. Specialty insurance brokers can help you find vendors that provide security awareness and phishing testing at a discounted rate.

Insurance carriers often have complimentary resources available to their clients, and they want to see that you're taking advantage of them.

The renewal process for cyber insurance can be a breeze thanks to Corvus's streamlined approach. For most accounts, no application is required, making it quick and easy to renew.

Brokers working with Corvus can reduce their time on renewals significantly, thanks to the cyber renewal process that requires minimal effort. This results in more time for other important tasks.

The tailored application process for the remaining accounts only requires a few questions, making it easy to get the information needed to renew. This efficient process helps to minimize delays and get you back to business as usual.

Most insurers categorize their business into five buckets when considering policy renewal, which then drives their renewal approach. This is crucial to know as it sets the stage for the entire process.

Discounting is not recommended, but it may be appropriate in some circumstances. It's essential to consider the potential impact on your policy before making any decisions.

To make informed decisions, access to certain data can bring unique insights to the table. This includes loss ratio per policy, which can help identify areas of improvement.

Diversification effect of new policies can also have a significant impact on your portfolio. It's a good idea to consider how new policies will affect your overall risk profile.

Risk characteristics, such as high aggregation points within the portfolio, can further add to the complexity of the renewal process. This is why it's essential to carefully review your policy details.

A catastrophe element of the expected long-term loss ratio can also play a significant role in renewal decisions. This is a critical factor to consider when evaluating your policy options.

As you navigate the renewal process, it's essential to take a step back and reassess your cybersecurity protections. This is a great opportunity to compare your current protections to industry, regulatory, and compliance standards relevant to your business.

Considering five buckets of insurers can help you understand their renewal approach, which may involve unique aggregations within your portfolio. Access to data such as loss ratio per policy, diversification effect of new policies, risk characteristics, and catastrophe element of the expected long-term loss ratio can alter renewal decisions.

Policy renewal is a great time to compare your protections to industry standards. Our eBook, Cyber Security Requirements for Cyber Insurance, outlines basic, preferred, and best-practice protections to consider before getting or renewing your policy.

Completing new assessments, such as penetration testing and security audits of your Microsoft 365 or Google Workspace tenant, can offer valuable insights to inform decisions and set priorities for future cybersecurity improvements.

You don't need to address every risk and gap, but focus on demonstrating improvements and prioritizing the most likely and impactful risks for your business.

Renewals can be a hassle, but some companies are making it easier for account holders. Brokers working with Corvus can reduce their time on renewals thanks to a cyber renewal process that requires no application for most accounts.

This streamlined process saves time and effort for brokers. A tailored application with just a few questions is provided for the rest of the accounts that need it.

The Kovrr platform is a game-changer for insurers looking to optimize their cyber insurance policies. It can help calculate expected loss ratios by policy, gaining quantitative and qualitative insights on aggregations of technologies and services used.

By using Kovrr, insurers can better target rate rises and potentially apply reductions to retain the best risks. This is especially important in a market where rates are increasing, but some insurers are constrained in their ability to take advantage of premium rate rises.

Kovrr's CRQ (Cyber Risk Quotient) enables insurers to quantify cyber risk on demand, driving actionable cyber risk management decisions. This is crucial in a rapidly evolving cyber risk management landscape.

The Kovrr platform can be used to identify areas of greatest risk aggregation, such as obscure third-party libraries or service providers that power other products. Awareness of these exposures enables insurers to consider reducing them.

By combining traditional considerations with additional data points, insurers can optimize their portfolio and make more informed decisions. This is especially important when renewing policies, where insurers can apply reductions to retain the best risks.