The Expert Podcast

• How important is cyber liability insurance and how big is the market?
• Coalition, a new cyber insurance company, recently raised a Series F investment valuing it at $5 billion — up from $3.5 billion just last year.
• The company grew its customer base from about 50,000 to 160,000 clients in a year and a half, showing a 200% revenue growth.
• Cyber insurance is booming despite some players pulling back.
• Technology and AI tools are transforming underwriting, allowing insurers to analyze clients’ networks and cyber risk profiles more efficiently than manual methods.
• Unlike traditional insurance (fire, general liability), cyber insurance underwriting relies heavily on technology, reducing labor costs and keeping premiums competitive.
• The cyber insurance market is expected to grow at around 25% per year over the next several years — a rare sustained growth rate in any industry.
• Coalition uses data from web scans, info security capabilities, and its own claims to select better risks and prevent cyber incidents before they happen.
• The biggest advantage of cyber insurance might be loss prevention rather than just claims payouts.
• Robust risk mitigation tools help keep the market open, lower premiums, and allow insurers to take on more clients.
• This tech-driven underwriting model disrupts traditional insurance giants like AIG and Beazley by offering faster, smarter cyber coverage.
• For insurance brokers and agencies:
  • Evaluate all cyber insurance markets available to you.
  • If you encounter roadblocks in getting cyber coverage, consider that your market may be less advanced or using outdated underwriting.
  • Look for providers that offer risk mitigation tools beyond just policies.
• For business owners:
  • Explore all coverage options with your broker or agent, including excess and surplus lines carriers that may not be admitted in your state but can offer coverage.
  • Follow the insurer’s loss prevention recommendations carefully — failing to do so might jeopardize coverage, similar to not maintaining a sprinkler system in fire insurance.
  • Implement strong cybersecurity practices like backups, password policies, and multi-factor authentication to protect your business and maintain coverage.
• Cyber insurance can be worth the cost, especially when paired with effective risk management.
• We invite insurance professionals and business owners to share their experiences and thoughts about cyber insurance in the comments.