With Policy Modularity, Resilience Raises The Bar On Cyber Insurance Innovation

Insurance CIO Outlook | Friday, April 01, 2022

To defend mid-market businesses, Resilience offers comprehensive insurance coverage and innovative cybersecurity tools. In addition, Resilience goes beyond risk transfer by combining security, insurance, and recovery to help clients become cyber resilient.

Fremont, CA: Resilience, a market leader in cyber insurance and security solutions, announced the launch of a new modular policy manufacturing process today, making it the first in the cyber insurance business to do so. As a result, resilience can now offer effective and adaptable insurance policies through its insurance operations to suit the demands of the fast-changing world of cyber risk.

Modularity allows brokers to deliver customized plans with negotiated coverages appropriate to a client's vulnerability instead of typical cyber insurance policies, which are complicated to alter. Customizing coverages necessitates either a complete rewrite or endorsements that make it difficult to comprehend what the policy covers in a standard cyber policy.

Because adjustments can only be made through complex endorsements, this can take days or weeks to complete. As a result, many insureds are left with out-of-date policies that don't cover the dangers they're concerned about today.

Modularity allows policy changes to be promptly updated and reflected in the policy. This new method allows for broker-specific versions that are endorsement-free but amendable—clear wording, fewer pages, and tracked modifications.

"Although cyber risk is and can be difficult, the policy document does not have to be. In the ever-changing cyber risk landscape, our modular policy delivers not only clarity for the insured who is reading the policy, but also contract certainty for our brokers and their clients "Resilience's Product Director, Sam Lisi, stated.

The modularity process at Resilience is made up of three layers:

Only the content relevant to the policy will be incorporated into the policy based on the underwriter's insuring agreement decisions. This allows Resilience to respond to changing market conditions by regularly introducing new insurance agreements without requiring policy renewals or amendatory endorsements.

In-line Policy Amendments: This layer allows the underwriter to choose from a pool of existing amendments without the confusion or bulk that comes with many amendatory endorsements. Resilience's pool of in-line policy adjustments can be indefinitely increased.

Dynamic Text Fields: Dynamic fields are open text fields that can be filled with various data. They're changed so frequently that it's more practical to leave them open to underwriter input rather than hard code them with insufficient alternatives.

"Every risk is distinct. Our modular policy simplifies the process for brokers and their clients by providing a simple, easy-to-understand policy document "Resilience's Chief Underwriting Officer for North America, CJ Pruzinsky, stated. "It may appear easy, yet this is a game-changer."

The shift to modularity at Resilience hinges on increasing the value of the broken relationship.

"Over the previous year of expansion, we've partnered with some of the world's most top cyber brokers, and trust is at the heart of what we do," said Tom Gamble, EVP, Global Distribution Officer for Resilience. "With our network, we're happy to bring this unique development to market."

Modularity has been used successfully in various industries to arrange complicated products and processes efficiently. Modularity allows separately created coverage modules to work together to produce a coherent and properly defined policy when it comes to cyber insurance.

The cyber threat landscape shifts regularly, often even by the minute, and burdensome cyber rules have struggled to keep up. This new type of policy document provides peace of mind when speed is of the essence and businesses require certainty and clarity of coverage.

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