A new report has provided deep analysis of the cyber insurance market to give insight into the sector’s huge changes and risks and how these have been driven by the pandemic.
The report, “How Cyber Insurance Has Evolved in 2021”, conducted by expert.ai, also looks at how costs and confusion have increased across the marketplace. In the first half of 2021 alone, threat research shows global cyber-attacks climbed 29%, ransomware incidents jumped 93% and demands rose an astounding 518%.
Report findings were produced using expert.ai’s advanced natural language understanding (NLU) capabilities. The AI-founded technology is combines symbolic human-like comprehension and machine learning (ML) to create practical applications that deliver real business results.
With deep understanding of any kind of document (presentations, contracts, emails, claims, reports, posts, social media messages, etc.) organisations can use the approach to turn unstructured language details into structured data at speed and scale. This augments discovery capabilities and streamlines the automation of complex, knowledge-centric processes.
Within the report, expert.ai analysed a sample of approximately 1,130 articles, published in a range of insurance industry outlets between January 2021 and November 2021. Focused on insurance news, opinions and analysis, the analysis identified the cyber-related issues discussed most online, capturing the main topics, trends and sentiment expressed about them.
Key cyber insurance findings included
- Products and impact: Cybersecurity and cyber risks were common themes with data clearly showing both a need for more suitable insurance products and the potential impact on existing contracts.
- Insurers struggle with risk: A strong correlation between cyber threats and COVID-19 appears to show that underwriters are struggling to evaluate their exposure to pandemic-generated vulnerabilities.
- Resilience and relevance: Cyber risks have been testing the ability of organizations to prepare for, respond to and recover from attacks. As a result, resiliency emerged as the main topic across 67% of cyber-related articles in the sample analysed, proving the insurance sector is still relevant to global improvements in cyber resilience.
Pamela Negosanti, head of sector strategy for financial services and insurance at expert.ai, said:
“What makes policy review and comparison especially complex for cyber is that threats are evolving and growing. Contracts may exceed 100 pages – it’s not easy to streamline the review process to avoid unintended risk exposure while ensuring coverage certainty.
“With NLU, we augment underwriters by making policy reviews faster, more consistent and accurate. We help them overcome new challenges - like those posed by ‘silent cyber’ - by improving the reading, identification and extractions of critical information around explicit and implicit coverages,” Negosanti added.
Keith C. Lincoln, expert.ai CMO, said:
“The right AI approach can provide enterprises competitive advantage by automatically generating fast, accurate market understanding from existing business documents.
“You can identify emerging risks and trends, gain a detailed picture of sentiment, design more effective and profitable products, seize new opportunities and more. It’s insight today for decision-making that’ll shape your future and provide strategic advantage,” Lincoln added.