The cyber renewal process is complicated.

Not only is the policy itself complex — filled with jargon and complicated technical requirements — but the changing risk landscape means that question sets and policy wordings can change dramatically from year to year. So keeping abreast of the latest changes and maintaining clear channels of communication with your clients is key.

As insurers increasingly look to advanced technologies to assess cyber risk, agents and brokers need to be aware of the new technical subjectivities that often accompany quotes and proposals.

Here are six suggestions to help with your next cyber new business or renewal placement:

  1. Familiarize yourself with the scanning technologies insurers use. Be prepared to answer your insured's questions about the process.
  2. Read the fine print. For renewals, don't be surprised if there are new subjectivities. Read them carefully and be sure to call out the subjectivities in writing, separate from the proposal. They're sometimes buried deep within the document, so highlighting them is critical.
  3. To increase response time, carriers often release pricing indications that aren't bindable. While this approach helps agents quickly assess the viability of terms, it doesn't mean the hard work still doesn't have to be done. The best coverage and price still doesn't mean a win until the insurer deems the risk acceptable.
  4. Don't attest to subjectivity compliance with broad statements such as "Subjectivities have been satisfied." Underwriters are increasingly demanding line-by-line technical answers to each individual subjectivity before releasing bindable terms. These answers require the involvement of the insured's IT personnel or third-party technology vendor.
  5. Insurers might not be lining up to insure your clients, particularly if their controls are perceived as subpar, so clients need to take the application and the process seriously. Presenting their organization in the best, most accurate light helps ensure the best results.
  6. Communication is key. You need to speak to your client's way ahead of their renewal, so any necessary remedies can be handled ahead of the renewal application, making it easier to find the appropriate level of coverage.

Learn more about what's next for the Cyber industry in the 2023 U.S. Cyber Market Outlook.

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