Adapting Insurance to the Cyber Threat | Cowbell | ITC Vegas 2024

Adapting insurance to the cyber threat.

Insuring against cyber crime is an increasingly important area of the Insurtech space. One company, Cowbell, is supporting SMEs by offering adaptive, tailored insurance products. At ITC Vegas last month, we spoke to Theresa Le, Chief Claims Officer at Cowbell, to find out more. 

Highlighting the power of cybersecurity insights gained through claims and the role AI has in providing efficient, resource-sensitive support for smaller enterprises, we find out about some of the developments taking place in this field. 

Supporting SMEs

Cowbell’s mission is all about supporting SMEs with the cyber threat they face. The average cost of cyber attacks to small businesses can be as much as £11,000 in one year. For Cowbell they’re also looking at emerging technologies influencing the insurance industry. 

In the video Theresa Le explains how the constantly evolving cyber threat landscape has become increasingly sophisticated. Cyber threat actors today are not only well-funded and highly resourceful but also often operate with a significant degree of protection, making them more challenging to combat. These advancements in cyber threats put SMEs at particular risk, as they typically lack the resources larger enterprises possess to counter these evolving dangers.

Cowbell’s approach is proactive and adaptive; the company continuously analyzes and learns from the tactics used by cyber criminals to develop tailored insurance products for SMEs. By leveraging these insights, they aim to prepare SMEs better for potential cyber incidents and make sure that insurance coverage evolves in tandem with emerging cyber risks. It’s a proactive stance that echoes much of the work being done in insurance innovation. 

Trends in the Insurance Industry

Le observes that cyber insurance plays a crucial role in promoting better cybersecurity practices across the industry. Through the claims process, insurers like Cowbell gather valuable insights into real-world incidents, which can be shared with policyholders to help improve cybersecurity protocols. By reinforcing cyber hygiene, insurers can encourage SMEs to adopt security best practices, ultimately driving the industry forward in terms of resilience.

Moreover, she notes that businesses that maintain high standards of cybersecurity tend to benefit in terms of insurance terms, as they may be eligible for more competitive pricing. This dynamic creates an incentive for companies to adopt proactive security measures, fostering a more resilient cyber landscape. The collaborative efforts between cybersecurity and cyber insurance are proving beneficial not only to individual businesses but also to the broader population, as shared learnings can enhance protection on a larger scale.

Emerging Technologies in Cyber Insurance

When it comes to emerging technologies, Le highlights the importance of AI and machine learning in shaping the future of insurance, particularly for SMEs. She emphasizes that smaller companies often lack the resources to manage cybersecurity effectively. To mitigate this gap, Cowbell offers specialized resources and services that are tailored to the needs of SMEs, such as pre-breach and post-breach support. These services are critical for teams with limited cybersecurity capabilities, enabling them to safeguard their operations against cyber threats.

By integrating AI and machine learning, insurers like Cowbell can streamline and enhance the efficiency of these services. For instance, AI can help in detecting patterns in cyber incidents, identifying potential risks earlier, and enabling more responsive coverage options. This technological integration allows Cowbell to offer a supportive, scalable solution for SMEs, ultimately empowering them to stay resilient amid the growing complexity of cyber threats.

It’s another great addition to our series of interviews from ITC Vegas. Be sure to check out more videos just like this one on our website.