More and more customers are turning to cyber insurance as a way to protect their business in the event of an attack. The cyber insurance market grew by 11% in 2018, but recent research from Lloyds shows that less than 30% of businesses in the United States, and a much lower number in the U.K, are finding suitable cover. Despite increasing customer awareness across the market, the fact is that many insurers set relatively low limits of cover and include a multitude of exclusions, to try to control their losses.
Why are Marathon interested in cyber insurance, I hear you say? The bottom line is that gaps in compliance are a great opportunity for you to sell services! According to research by RapidFire Tools, the number one reason used by insurance companies to deny claims is a failure to comply with essential practices for data security. Compliance with the security requirements set by the insurer prior to the policy being sold, or needed as a result of a claim, can be a challenge for customers who haven’t taken the time to formulate their security strategy into a well-documented and cohesive plan - and a natural entry point for a services discussion.
So, with a service-led approach to security compliance and documentation, resellers can effectively help their clients to get the right level of coverage and a fair pay-out, in the event of a breach.
WHERE TO START
The Marathon team can help you to identify compliance service opportunities with both new and existing customers. Here are some suggestions, which we think will give you the biggest impact in the current market: -
Offer a Compliance Check
With a sharp rise in the level of unpaid claims in the last year, the devil is in the detail. If your customer already has cyber insurance, why not offer a service to check their level of compliance, in the event of a claim? Alternatively, why not shortlist a set of insurance providers that you can work with to offer to new customers as pre-checked, or compliant?
Protect and Educate with Cyber Essentials
We’ve covered the benefits of Cyber Essentials before, but the scheme is a good way to sell a package of assessments and security basics, for cyber insurance compliance. Smaller customers may also benefit from free cyber insurance cover following certification, through the accreditation body, IASME Consortium, although the indemnity levels may not be sufficient for larger companies. As an accredited certification body, Marathon is well placed to help you and your customers throughout the whole process.
Sell a Service for Security
Remove the need to document and maintain security infrastructure internally, by providing a single total security solution, on a monthly subscription. Often sold when the customer is overwhelmed by the complexity and resources needed to maintain their own security, it could also be used for compliance. The OneSecure Service from Marathon, as an example, includes a comprehensive level of documentation to demonstrate that data is being managed securely, using best practice – all of which could be used to ensure adequate coverage and compliance in the event of a claim.
As always, the Marathon team are here to help you make more margin and revenue from complimentary cyber services. Talk to the team on 020 8329 1000 or feel free to message me for more information.