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World’s first cyber insurance policy comparison engine launched by STORM Guidance

by Brian Sims

The world’s first cyber insurance comparison engine has been launched to allow UK brokers and other professionals involved in this market to rapidly compare and analyse the wide range of policies available. Created by cyber risk and incident response specialist STORM Guidance, Cyber|Decider (www.cyberdecider.com) initially provides detailed comparisons on 16 different policies from leading cyber insurers, in turn covering around 80% of the current market.

Neil Hare-Brown, CEO of Cyber|Decider, informed Risk UK: “Until now, the inability for brokers to easily compare policies has been a real handbrake on the development of the cyber insurance market. Cyber|Decider makes this a thing of the past, effectively providing brokers and others with a straightforward comparison for these complex and variable policies. For the numerous brokers without a specialist cyber team, analysing policies involves a great deal of work for a small part of the overall client premium. Consequently, many only offer one policy, but invariably this will not be the best policy for many of their clients as it will not cover areas that are important for them or, conversely, they’ll be paying for additional coverage they don’t really want.”

Hare-Brown continued: “To solve this issue, over the past nine months we’ve been working with insurers, brokers and others in London and elsewhere to develop a clear, consistent and ultra easy-to-use product.”

In addition, Hare-Brown stated: “Currently, only around 10% of SME businesses in Britain have cyber insurance, but the prominent ransomware attacks this year have already increased the number of companies looking for cover, not least because many are realising that the possible costs of attacks are becoming far too great for them to simply absorb. Many policies don’t include important business interruption costs from such attacks. With this in mind, Cyber|Decider will help brokers to capitalise on this growth in demand as they can now confidently offer the right policy without having to spend days going through numerous policies with a fine-tooth comb.”

Speaking at the launch event at Lloyd’s of London, international lawyer Celso de Azevedo, co-founder and committee co-ordinator of the recently-created Cyber Insurance Association (the forum of professionals in London involved in cyber insurance) welcomed the launch of Cyber|Decider. “London is one of the very few markets with the depth and expertise in the cyber insurance market for a product such as Cyber|Decider to emerge,” stated de Azevedo. “Given the lack of standardisation in cyber insurance policies, the detail it synthesises is a huge achievement. As this market matures, it will help to drive improvements and clarity.”

Problems faced by brokers

There are several examples of the problems brokers currently face when dealing with cyber insurance policies. For instance, policies often use different definitions and terms for the same thing, or otherwise include the same thing under different headings and sections. This renders policy comparison both time-consuming and laborious.

Second, it’s often the case that policies use different definitions, right down to the most basic elements like ‘What is a computer?’ For instance, some policies include industrial control systems in their definition and some don’t. This is a pretty vital distinction for many businesses.

There’s also a high and surprising variability in terms of what’s covered between different policies. For instance, while most policies are pretty similar in their coverage of privacy issues, there’s a great deal of disparity around business interruption issues.

Cyber|Decider: key facts and features

Currently, Cyber|Decider features 16 policies from leading insurers covering 80% of the market. The cost for brokers is £350+VAT per annum for a five-user account pack.

Features include drill-down analysis focusing on points of cover that apply, general policy conditions, cover areas that don’t match criteria, cover breakdown with all comparable details, customisable side-by-side comparison views and relevant points of exclusion. There’s also consistent benchmarking across all cyber policies.

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