Cyber Liability Insurance: A Lucrative Market for The Smart Insurance Agent 

Cyber liability insurance, sometimes also referred to as cyber liability insurance or cyber insurance, is coming to the forefront after a spike in cyber-attacks in recent years.  

For instance, Jackson County in Georgia was hit by a massive cyber-attack as recently as March 2019. The local government and law enforcement agencies couldn’t access any files on their system. It had malware, also called ransomware, which demanded payment for the release of the data. The county paid $400,000 to get a decryption code, which allowed it to restore all the affected computers.   

It was just a year after a ransomware attack crippled Atlanta’s municipal government. It was one of the most severe cyberattacks ever to hit a big American city. Sadly, such attacks are getting increasingly common. More than a matter of “if,” cyber threats are turning into a question of “when.”  

Now that you’ve got the picture of what’s happening around you, you might have an idea about who the next potential victims could be. They could be your clients! It’s almost impossible now to run a business or organization without going online. Attackers have endless targets they can exploit to meet their demands because of this.  

Cyber-attacks are bound to get more frequent as hackers get smarter. Because of the mounting risk associated with cyber threats, Cyber Liability Insurance is the niche market for pitching to your potential clients.       

Cyber Liability Insurance is on the rise   

Everyone increasingly depends on the internet for their everyday work. Billions of people’s data is stored online. That means there is always a risk of data breach.   

Take the case of Uber. Fifty-seven million user accounts and 600,000 driver’s accounts on the popular ride-hailing app got breached back in 2016. News of Uber paying $100,000 to the hackers to delete the data instead of reporting it surfaced later, which made things worse for them. While Uber offers Rideshare Insuranceit’s not clear if they had any cyber liability insurance to cover the damage caused by the massive attack.  

The cyber-attack continues to cost Uber to this day. It had to pay $148 million to settle the legal actions filed against them. When the lawsuits for failure to prevent data breach start coming, D&O Insurance can help protect the business and employees. As an insurance agent, you can also pitch D&O insurance to potential clients, especially ones with companies that handle consumer data.  

Just like Uber, several other companies are at risk of being attacked. Facebook is a prime example. In 2018, around 50 million users’ personal information got exposed after it got attacked. The attack put a dent in Facebook’s reputation. Smaller businesses can’t afford to deal with such massive hits. Cyber Liability insurance against such attacks is turning out to be as indispensable as commercial insurance or commercial umbrella insurance. 

This very need is a significant reason as to why insurance agents should choose to specialize in this niche.     

Because at the end of the day, your clients are concerned about the ultimate reason – to protect their business!

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Cyber Liability Insurance: The Niche Market For You

In basic terms, Cyber Security Insurance helps to prevent losses related to security breaches and data hacks. And there’s so much more to Cyber Security Insurance that makes it a potential market for insurance agents. And here are the reasons why.

First off, let’s talk about the market’s growth in terms of its size. According to a survey by Grand View Research, the Cyber Security Insurance market was worth the value of USD 4.3 billion in 2018.

There’s more to it.

As per the data by Allied Market Research, its market size is expected to grow by to $14 billion by 2022. Now that’s a huge profit coming out from a single niche.

In terms of geography as well, the market’s growth is luring than ever!

The fact that this market’s demand is more in the US is what makes this blog an interesting read even more. As per the data by Allied Market Research, the US strongly dominates the cyber insurance market share, followed by Europe.

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Cyber Liability Insurance: Be in it to Win It    

The minute you have any valuable data in your hands, you are at risk of an attack. It’s as simple as that. Such attacks can cause irreparable damage to a company. Because of this, there’s a high demand for it in all kinds of industries. 

The cyber liability insurance niche is booming for a reason. It has all the prospective clients that you, as an insurance agent, could want.   

Reach one step closer to your clients.   

All you need to do is take up this niche market!

How has the increase in data breaches led to the rise in demand for Cyber Liability Insurance? 

Because of frequent data breaches, a lot of clients are calling out for this insurance. But really, how big is the market getting? Let’s crunch the numbers.   

According to AmTrustFinancialcyber-attacks are turning out to be the number one emerging risks. A study by the University of Maryland has revealed that a cyber-attack happens every 39 seconds.  

Considering this, you can see why the premium value of Cyber Liability Insurance has increased simultaneously with the rise in cyber threats. As per Insurance Journalinsurers collectively wrote $billion premiums in 2019. This was a 12 percent jump from 2018, when $1.8 billion premiums were written.    

The data speaks for itself – Cyber Liability Insurance is booming, and it shows no sign of stopping!    

Cyber Liability Insurance: A Growing Market Is Waiting for You   

The trends and the data on this market are clear evidence to us on how this niche has become one of the fastest-growing segments.   

As an insurance agent, you need to make the most of this boom, since it shows no signs of slowing down anytime soon.  

Do you think Cyber Liability Insurance is the right niche market for the insurance agents? Comment below and let us know.   

Learn how you can flourish as an agent after one call!

Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!

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