New Cyber Risk and Privacy Insurance Product to Expand the Small and Medium Sized Market

We were recently introduced to Digital Risk Resources (DRe), a new company that is bringing cyber risk and privacy coverages to small- to mid-sized commercial insureds.  DRe is not an insurance company or a broker, but rather a company that provides a turnkey product for insurance companies that want to offer cyber risk insurance protection without the expense and risk (and long lead times) of creating their own product.

This private label product includes:

  • Draft endorsement language (dubbed Internet Security and Privacy – ISAP),
  • Web-based underwriting and rating,
  • Risk management services, and
  • Claims support

Best of all, they have 100% quota share support for ceding carriers.  Aspen Re, the A-rated Bermuda company founded in 2002, provides the reinsurance support and is a part owner of Digital Risk Resources.

Turnkey options like this, for carriers that don’t want to invest the time or money in creating their own product, staffing up, and securing reinsurance, are not new.  GenRe, for example, has had a similar product for Employment Practices Liability Insurance for years.

In our experience, carriers often face requests (and sometimes demands) from their agents to offer these new and complex products.  These requests to fill out the portfolio of coverages that the agent can offer from a single carrier have to be responded to; for cyber risk, DRe’s approach can make a lot of sense to a carrier facing these requests.


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