Getting a leg up on the competition in the hyperactive cyber insurance market is a real challenge. For years, carriers and underwriters have been searching for ways to differentiate themselves, with many trying to outplay each other with value-added services. The problem with this tactic, according to Dan Burke, the national cyber practice leader at Woodruff Sawyer, is that carriers can’t really afford to offer these services.
Burke had 12-years of experience on the underwriting side, including seven years underwriting tech E&O and cyber at ACE and five years with specialist underwriter Hiscox, before joining Woodruff Sawyer, which is one of the largest insurance brokerage and consulting firms in the US. He has firsthand experience of the constant tug of war carriers are playing between maintaining profitability and offering clients extra services.
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“One of the insights I have from being on the underwriting side was that, at the time, lots of underwriters were trying to innovate with value-added services that they could bring to the table and offer to clients for free. They were focused on security products or tools that might ostensibly reduce losses,” he told Insurance Business.
“However, the reality was that the sales chain to get from carrier, through wholesale broker, through retail broker, to end-client was very difficult. Carriers can’t afford to pay for these value-added services because cyber insurance premiums are so cheap, and what they can offer is either really scaled-back or not something that’s actually useful for th ..
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