Using CRQ to Improve your Cyber Insurance Policy
Optimizing Cyber Insurance Decisions
Leveraging CRQ to Achieve Highly Customized Cyber Insurance Policies
Understanding Cyber Insurance
One of the most common approaches to managing cyber risk is to adopt a cyber insurance policy, ideally offsetting any financial damages incurred due to a cyber attack. Common cyber insurance coverage loss scenarios include business interruption, data theft and privacy, third-party liability, ransomware and extortion, third-party service provider failure, and regulatory compliance.
Assessing Risk Appetite
Cyber insurance policies are generally purchased when the potential cost of a cyber risk surpasses an organization's risk appetite levels, but the cost of mitigation is too high. A business's risk appetite level, or the amount of financial risk it is willing to take on, varies, and therefore, so, too, will be its approach to cyber insurance.
Identifying Coverage Gaps With CRQ
Leveraging Kovrr's on-demand CRQ solution, organizations can easily identify the gaps in their policies. For instance, after running a quantification, cyber risk managers may discover the company is highly likely to experience a business interruption scenario but likely to suffer from compliance costs. In this case, they can reallocate resources and retailer policies to reflect this risk landscape
Negotiating With Insurers
The insights that can be found on Kovrr's CRQ platform should be utilized at the negotiation table. Highlighting the quantified loss likelihoods, which are based on objective data specific to the organization, risk managers and CFOs are empowered with the information necessary for achieving highly targeted terms, conditions, and premiums that are cost-effective.
Best Practices for Utilizing CRQ
When using Kovrr's CRQ for cyber insurance coverage optimization, executives can review how likely they are to exceed premiums for specific loss scenarios. If the likelihood is low, it may be a good indication that premiums, limits, and sub-limits can be lowered, and resources can be reallocated to a loss scenario more likely to surpass its premium.
Cyber Insurance Policy Improvement FAQs
Speak to an Expert to Learn MoreWhy is CRQ essential before negotiating a cyber insurance policy?
What information does Kovrr’s CRQ offer for policy optimization?
Will Kovrr’s CRQ platform inform me of my average expected loss?
How does breaking loss expected loss scenarios help to optimize insurance coverage?
Negotiate the Optimal Cyber Insurance for Your Organization Today
Cyber insurance is an excellent strategy for managing cyber risk. However, to achieve custom, cost-effective policies that match an organization’s unique risk landscape, executives need to leverage CRQ for deeper insights.
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