The cyber insurance sales process has predictable obstacles easily overcome by the proper approaches. Previous articles explained that a prospect will first express denial, saying “A breach won’t happen to us,” and then reason that even if a breach occurs, “We’re already covered by our existing policies.” Next is typically the argument that “Our data is secure.” Parts 1, 2, and 3 of this series address guiding the prospect past denial to an understanding of the realities of cyber risk. In the last article, Part 4, we explored how the objection “I can’t talk to the tech people” can be overcome.
The fifth predictable and completely understandable objection, “Applications are difficult to complete,” can be diffused by presenting the prospect with a preliminary indication of terms.
In the typical purchase scenario, an application is completed, then quotes are received, then options are analyzed, and finally, a buying decision is made. However, in light of the reluctance of insureds to complete cyber applications, INSUREtrust has developed a tool that can provide the insurance buyer with a reasonable expectation of premium costs based on only annual revenue and industry class.
This enables the prospect to make an educated business decision of whether to pursue coverage through completing a detailed application. An addition benefit to the application process, which has become streamlined recently, is that it acts as more than an underwriting tool: Applications also present cyber risk management guidelines for the potential insured to consider.
Cyber coverage should be a part of any property and casualty insurance discussion. The likelihood of purchase is increased by guiding the prospect through the five most common obstacles while focusing on the necessity of cyber risk protection.
Brian Brown is a guest author for INSUREtrust. He is an expert in cyber liability coverage, and has held a number of senior positions in the insurance industry for over a decade. He may be contacted by email at [email protected] or by phone at 404-849-3004.