Our guest on this episode of Chatting Cyber is at the forefront of Insurtech innovation, deploying new approaches to cyber underwriting (with a ripple effect on traditional insurance). Peter Hedberg, VP for Cyber Underwriting at Corvus Insurance, shares with Host Marc Schein the many ways tech-enabled strategies are transforming the landscape. Says our guest: Heightened engagement among both cyber insurance brokers and policy-holders is yielding a “virtuous cycle” of better bottom-line results! Find out how brokers can help foster alignment and build trust between insurance policy purchasers (often CFOs) and their IT executives (often CIOs, CTOs). You’ll also learn how Corvus offers financial incentives to those who proactively undertake risk self-assessments to reduce liability – a major plus for all concerned. Peter also underscores why it’s so important to put in place a solid three-legged stool: Application, Exposure, Technology. When these elements are in sync, he explains, vulnerability is minimized to everyone’s benefit. Find out where cyber insurers are with developments related to third-party and systemic risk (works in progress!) and how a Minneapolis-born guy who originally got licensed as a traditional insurance broker became one of the most well-respected cyber specialists out there. “The feedback we’re getting from policy-holders is that we are creating an eco-system and environment that is improving their stance,” says Peter. “And I’m just really happy that as an Insurtech I can point to those numbers and that value.”
- Check your complementary skill sets. You may be positioned for a niche specialty!
- How does Insurtech differ from traditional insurance? The focus is on driving down losses through technology-enabled underwriting.
- The Three-Legged Stool of Underwriting: Application, Exposure and Technology.
- Putting the right underwriting elements together creates a profitable “virtuous cycle.”
- Insurtech adds value by generating tech-enabled approaches that drive down losses.
- Corvus Differentiator: It incents policy-holders to engage with proactive risk assessment.
- How can brokers help?
- By proselytizing the idea of cyber policy-holder engagement.
- By fostering alignment between the insured’s buyer (typically a CFO) and their IT leadership (typically a CIO or CTO).
- Third-party wrongful collection of information has surged but ramifications are still actuarially unclear and still being litigated.
- Assessing systemic risk requires nuance and working through unknown liabilities.
- On the horizon for 2024? More frontlines information about how well policy-holder controls are working to control risk.
- Key Quotes:
- “When cyber (insurance) slowly became more of a mainstream product offering they just pointed to me and said: You’re the cyber guy!” – Peter (02:10)
- “The value proposition with Insurtech is just so fundamentally different from insurance.” – Peter (04:20)
- “Insurtech is leveraging technology to create a better policy-holder experience, better value and more profit left over at the end of the year.” – Peter (05:24)
- “Insurtechs have proven that they can grow really fast, but that doesn’t mean they can make money.” – Peter (05:49)
- “Engagement brings dividends to you as a policy-holder. It makes you a safer policy-holder.” – Peter (09:15)
- “We in the cyber market really demanded much better controls on our policy-holders over the last couple of years and a lot of that has been delivered to us.” – Peter (14:25)
- “The feedback we’re getting from policy-holders is that we are creating an eco-system and environment that is improving their stance. And I’m just really happy that as an Insurtech I can point to those numbers and that value.” – Peter (15:58)
ABOUT OUR GUEST:
With more than 15 years of insurance industry experience, Peter Hedberg is Vice President for Cyber Underwriting at Corvus Insurance. He has a specialty in Cyber and Tech E&O lines. A Minnesota native, Peter started his career working his way from IT intern to the position of cyber broker at Hays Companies over the course of ten years. He has spent the past six years based in New York City, first growing Hiscox USA’s business in the Northeast region as Assistant Vice President and, more recently, managing the tech and cyber side of NAS Insurance Services (now Tokio Marine) HCC as Vice President.
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ABOUT OUR HOST:
National co-chair of the Cyber Center for Excellence, Marc Schein, CIC,CLCS is also a Risk Management Consultant at Marsh McLennan. He assists clients by customizing comprehensive commercial insurance programs that minimize the burden of financial loss through cost effective transfer of risk. By conducting a Total Cost of Risk (TCoR) assessment, he can determine any gaps in coverage. As part of an effective risk management insurance team, Marc collaborates with senior risk consultants, certified insurance counselors, and expert underwriters to examine the adequacy of existing client programs and develop customized solutions to transfer risk, improve coverage and minimize premiums.
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