Image by Gordon Johnson from Pixabay
While small compared to the rest of the industry, cyber insurance is growing rapidly. Between 2016 and 2020, the take up rate of cyber policies grew from 26% to 47%. The GWP of standalone cyber coverage in particular grew by 29% between 2019 and 2020 because organisations wanted more specific protection.
PolicyDock has had the chance to collaborate with businesses across the insurance value chain to help them take advantage of the rising interest in cyber security protection. Here’s how our technology has been applied in different scenarios:
What we can do for insurers
15- or 20-year-old legacy core systems carry many duplicated offerings, the result of a lack of standardisation across geographies. Consequently, responding to a customer’s claims took a long time because insurers needed to source the exact policy version to read the details.
When working with a renowned carrier, PolicyDock utilized its AI and machine-learning trained APIs to simplify thousands of legacy product data models while eliminating redundancy. Data standardisation enabled digital products to be released in the market very quickly through the carrier’s new systems – 45x faster than expected. At the same time, the carrier was able to monitor global rollout results in real time. Additionally, PolicyDock’s data platform served as an ongoing interface between the carrier’s new digital system and core legacy PAS.
The final cost of the project? 80% under budget.
What we can do for MGAs
MGAs specialising in cyber insurance like Coalition Inc and At Bay have enjoyed great success raising capital over the past 12 months. The fact that investors are willing to devote over $100 million to each of these companies demonstrates the faith they have in the business potential of cyber security insurance.
PolicyDock has had the opportunity to work with a California-based MGA dedicated to protecting small and medium sized businesses from cyber-attacks. During the COVID-19 pandemic, PolicyDock’s APIs digitized and securely integrated the MGA’s products with the carrier’s outdated technology platform. The process was completed within two weeks instead of six months. On top of that, the MGA ended up spending 90% less than they originally estimated.
Now not only do their customers have a faster portal to work with, their staff spend less time on manual tasks and more time analysing real time data.
What we can do for digital ecosystems
Embedded insurance is emerging as a new way of distributing insurance efficiently because the technology underpinning it processes data in real time at a relatively low cost. The automated processes allow insurance products to be offered to people or businesses at the touch of a button when they need it the most as part of the product or service.
Businesses like Google have added this to their revenue stream by partnering with Allianz and Munich Re to provide a cyber insurance product to its Google Cloud customers. Launched in March this year, the policies will be offered to US companies with an annual revenue between $500 million and $5 billion, and cover up to $50 million in losses.
Similarly, PolicyDock has previously worked with a leading mobility provider to realise their aim of offering insurance as part of their checkout process. Prior to our involvement, internal engineering estimates concluded it would take over six months to implement the project. Projected fees and system upgrades made the project unprofitable.
By integrating their product using PolicyDock’s API, the white-label cloud platform was deployed and integrated with the provider 4x faster than expected, at 80% of the original internal assessments. Both the provider and insurer are able to monitor business results in real time using native dashboards.
For more information, please contact PolicyDock here.
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