In our recent study of the market for cyber/privacy insurance and services, we asked insureds and prospective insureds about their opinion of the value of a knowledgeable underwriter. This is an important question in a complex, evolving product like Cyber.
We were surprised, though we probably shouldn’t have been, that the respondents were not all that concerned with the expertise of the underwriter.
Why is this important? Not only can a knowledgeable underwriter help an insured or a prospective insured understand the risks that are being evaluated, they are also more likely to be a more stable market. I believe that an expert underwriter who understands the risks is less likely to be surprised when claims arise, as they inevitably do. A surprised underwriter might react by restricting coverage, dramatically raising rates, or even withdrawing from the market
Naive capacity is not good for insureds, brokers, or insurers. We’d like to see these middle-market companies place more value on the knowledge of their underwriter, as well as on the knowledge of their broker, when considering cyber insurance.
Here’s the question and the results, as well as more of my comments:Value of Underwriter’s Knowledge
What do you think?