Thinking Beyond Insurance to Manage Evolving Cyber Risks
Travelers prepares to bring new cyber services to the UK and Ireland market following its acquisition of Corvus.
Matt Waller, formerly of Corvus and now head of the combined cyber underwriting team at Travelers Europe, and Chris McMurray, managing director for cyber at Travelers Europe, discuss the integration of Travelers and Corvus, how cyber risk management is changing, and how clients can protect themselves.
Travelers acquired the insurtech Corvus in January of this year. What was the goal in bringing these companies together?
Our companies have complementary strengths that will help brokers and clients proactively manage and mitigate cyber risks. Travelers is one of the first traditional cyber insurers to acquire an insurtech – and together, our businesses offer the strength and stability of an established insurer along with the leading-edge technology capabilities of an insurtech.
On the Travelers’ side, it includes an S&P AA financial strength rating, underwriting expertise and a brand that is globally recognised and trusted. Corvus brings underwriting knowledge, strong client relationships and proprietary scanning technology that changes how we can help clients monitor and mitigate cyber risks.
How does this scanning technology work?
The technology effectively identifies a client’s vulnerabilities throughout the policy period and works with them to reduce their exposure to cyber events. It allows us to continuously scan risks over the course of the policy period and provide insureds and brokers with access to real-time data on potential cyber vulnerabilities and exposures.
If we see a specific vulnerability, we’re able to quickly identify other risks in our portfolio that might have that exposure too. Our threat intelligence team can then provide guidance to the client on what needs to be done to remediate that risk. If we identify one of our clients on the dark web and believe their data is being sold there for example, we can notify them and assist with remediation through our breach response and claims support.
Has the scanning technology helped clients prevent cyber attacks from occurring?
In the US, the technology has prevented ransomware attacks, saving clients money. Over the past several months, we have started to integrate the scanning technology into all Travelers cyber policies. We have already gathered a lot of data and threat intelligence from our tens of thousands of policyholders in the US that we can extrapolate and use in the UK and Ireland. We’re one of a few providers that can do this and we’re excited to bring our full capabilities to the market in the coming months.
How is technology influencing how insurers and clients manage cyber risk?
Cyber insurance started as an insurance policy sold on the back of risk transfer, and then became more about providing claim and breach-response services. Now, businesses need proactive risk management services to handle the increasingly sophisticated cyber risks they face – and that’s where our scanning technology adds value. Our technology is also informing underwriting decisions, helping us be more supportive and competitive in the market where we need to be. It gives us a dynamic view of the market that we haven’t had historically. Going forward, it will help us see how we can better support clients on the upper band of cyber hygiene as we collect more client information and data points.
Is the integration of your businesses changing your appetite?
We’re gaining great scale, so whether the client is a small business in York, or a multinational corporation domiciled in Singapore, we’re able to write cyber cover for them. The integration of Travelers and Corvus makes it possible for us to write business in the UK and Ireland, and internationally through Lloyd’s, as well as grant delegated authority to managing general agent partners around the world. As a result, we can provide capacity and technology support to clients and gain targeted small business distribution in a light footprint.
Penetration of stand-alone cyber insurance has been low in the UK and Ireland, as well as internationally. How do you think your offering can change that?
We want to build awareness that cyber protection is about more than insurance. When you purchase cyber insurance from us, you’re not just getting risk transfer solutions through cyber insurance. You’re also getting round-the-clock, real-time risk monitoring, risk remediation, breach counsel and claims service. We complement a client’s IT team and security team and can help if we detect a threat to their business. We’re bringing together the people, skills and technology to provide a market-leading service offering.
Beyond your technology, how do the other elements of your offering help clients manage their cyber risks?
We’re thinking beyond insurance by combining our product with a full suite of cyber solutions. In addition to our scanning technology, we give our clients access to a leading team of cyber experts in risk control and claims. Our risk control team helps clients address their cyber risk hygiene requirements to improve their cyber posture and reduce the probability of business disruption due to a cyber event. We also understand that a cyber attack can happen to even the most prepared business, so if our insured does experience a breach, our in-house claims team is available 24 hours a day, seven days a week to help. Our insureds can rest easy knowing they get immediate access to industry experts in their most important time of need.
In the coming months, we’ll share more details about forthcoming enhancements to our insurance offerings and the new benefits available to insureds. In the meantime, brokers can continue to go online to find out more about our offerings.
The information provided is for general informational purposes only. It does not, and it is not intended to, provide legal, technical, or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time, and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information.
Travelers operates through several underwriting entities in the UK and Europe. Please consult your policy documentation or visit the websites below for full information.
