The Challenge
The leading media and marketing company faced significant challenges with its existing cyber insurance coverage. Despite having a policy in place, the company's leadership was concerned about potential gaps in coverage that could leave them vulnerable to emerging cyber threats. Additionally, there was a suspicion that they were overpaying for their current insurance plan without receiving optimal protection.
It became increasingly clear that their coverage had not evolved in line with their growth and the sophistication of threats they faced. The primary challenges included:
- Inadequate Coverage: The existing policy did not fully cover new types of cyber threats, leaving significant exposure to potential financial and reputational damage.
- Overlapping or Redundant Coverages: They were paying for coverages that overlapped with other policies, resulting in unnecessary costs.
- Lack of Tailored Solutions: The policy was a one-size-fits-all solution that did not consider their specific risk profile, industry-specific threats, and growth trajectory.
The Solution
The collaboration involved a thorough multi-phase approach:
- Risk Profile Assessment: CybIQs comprehensively evaluated their current cyber risk exposure, including potential vulnerabilities and the specific threats most relevant to their industry.
- Policy Review and Gap Analysis: A detailed analysis of the existing cyber insurance policy was performed to identify coverage gaps, redundancies, and areas of misalignment with the company's risk profile.
- Cost/Benefit Analysis: A cost/benefit analysis was conducted for each identified gap and redundancy to determine the financial implications of adjusting coverage.
- Negotiation and Optimization: Armed with deep insights, CybIQs and the broker on record engaged with insurance providers and renegotiated terms, eliminated redundancies, and enhanced coverage for specific risks identified in the assessment phase.
- Customized Insurance Strategy: A tailored cyber insurance strategy was developed, prioritizing coverages that offered the most significant benefit to them and aligning the insurance policy with the company's current and future needs.
The Results
The collaboration yielded significant improvements in both coverage and cost efficiency:
- Enhanced Coverage: the cyber insurance coverage was expanded to include protection against emerging threats, such as sophisticated ransomware attacks and social engineering scams, providing a more comprehensive safety net.
- Reduced Costs: By eliminating overlapping coverages and negotiating better terms, they reduced annual cyber insurance premiums by 20% while increasing coverage.
- Increased Confidence: With a policy that accurately reflected their risk profile and offered protection against industry-specific threats, the leadership felt more confident in their cybersecurity posture and ability to mitigate potential financial impacts of cyber incidents.
- Strategic Risk Management: The process fostered a deeper understanding of their cyber risk landscape, enabling proactive risk management and strategic planning for future cybersecurity investments.