BUSINESS INSURANCE
Deepfake Fraud Attempts : Jumped 3,000 % year-on-year between 2022 and 2023 , as reported by Onfido
In the United States , the National Association of Insurance Commissioners ( NAIC ) has established a Cybersecurity Working Group to develop model laws and best practices for cyber risk assessment . These regulatory initiatives are likely to accelerate the adoption of advanced analytics and AI-driven underwriting tools across the industry .
Si notes : “ With the new SEC guidelines , the NIS2 directive and the coming UK Cyber Security & Resilience Bill , this is a must-have , not a nice to have .”
Regulatory scrutiny is intensifying , particularly around silent cyber exposures . The industry is seeing a push towards affirmative cyber coverage and clearer policy language to eliminate ambiguity around cyber-related losses in traditional property and casualty policies .
James adds : “ With added cyber risk comes more focus on regulation and compliance , not least because of the interest in AI across industries . However , there is a lack of global standardisation across regulation , so policies should take account of this changing landscape . New regulations require a dedicated approach from businesses to reflect these changes in policies .”
The role of data in personalisation and scalability As the cyber insurance market matures , insurers face the challenge of balancing personalisation with scalability across diverse business sectors .
James explains the approach : “ For the insurance companies themselves , it ’ s all about thoroughly understanding the needs of the businesses they are providing service to . This can be achieved by building out risk profiles using first and third party data , and applying analytics to help tailor policies more effectively , adapting them to the size , sector , risk and growth stage of the businesses .”
He continues : “ Leveraging data-driven insights not only helps personalise coverage but also ensures that these policies can be scaled efficiently as the business evolves . This approach allows insurance companies to meet diverse business needs while maintaining operational efficiency . Ultimately , the more accurate and complete data an insurer has on its prospects and clients , the more accurate and ‘ right-size ’ their pricing and policies can be , which in turn should reduce claims .”
The future of cyber insurance is collaborative As the cyber insurance market continues to mature , collaboration between insurers , technology providers , and policyholders will be crucial . The rapid pace of technological change means that static , annual policy renewals may soon become obsolete , replaced by dynamic , data-driven risk transfer solutions
insurtechdigital . com 135