We wanted to know more about how senior executives in middle-market companies in the U.S. felt about the cyber and privacy-related products. In particular, we were interested in their experiences with the performance and services of the insurance companies, brokers, and service providers they had contact with.
We asked about:
- Awareness of various insurance companies, brokers, and service providers
- Satisfaction with those organizations
- Claims experiences and satisfaction
Insurance companies in the Cyber Risk and Privacy area are not widely known; respondents listed a limited number of carriers compared with the many that are in this space. Understandably middle market executives that are responsible for insurance on a part-time basis (none reported that they employed a Risk Manager) are not astute about who is in the market.
Current insureds knew of more carriers than the prospective insureds. This is perhaps because they had been introduced to some of the companies through the application and proposal process.
Most of the insured companies were satisfied or very satisfied with their carrier. This speaks well of the cyber risk product design and especially of the performance of the service providers, which are likely to have more contact with the insured than any party expect the broker.
There were no brokers dominant in their cyber risk presence; respondents were likely to stay with their current broker when considering the purchase of cyber coverage. Middle markets also expected to remain with their current broker when renewing their coverage.
Service providers can be an important component in a cyber risk policy, both in the risk avoidance and mitigation value they bring and in their potential to sway a prospective insured to buy a policy (or particular policy) because of the service provider involved.
Existing insureds knew of a number of different providers, but there was no dominant name. Many did not know a single provider’s name.
Prospective insureds were even less likely to know of specific providers. This indicates to us that there is much to be done about educating and influencing insureds and especially prospective insureds about the presence and value brought by the service providers. Service providers need to greatly elevate their profile amongst cyber risk insurance prospects in the middle market.
Finally, we asked about claims experience of the companies. Not surprisingly, quite a few had experienced a claim. Of those willing to speak about their claims experience, all were either very or somewhat satisfied. This is probably higher than in most lines of insurance, and speaks well toward the expectations they have of the coverage and of the performance of the claims personnel of the insurance company. We need to be cautious, though, as this very small group of insureds may not be representative.