CHICAGO – Nick Economidis, underwriter at Beazley, wants to dispel a myth.
Speaking at Advisen’s Cyber Risk Insights Conference, he explained that underwriters are not “trying to measure individual companies’ risk and come up with a special price just for them.” He referred to models that provide an estimated cost for a risk type and size, based on average losses and probable maximum losses.
His message to the sold-out audience: “We want to kick out bad risks. We look at the general model price and adjust it based on the quality of risk.”
Discussing the current cyber landscape, the underwriters on the panel agreed that one red flag for a potential “bad risk” is the application. They said the application is a representation of the company and a sloppy application does not reflect well.
The underwriters also noted middle-market cyber insurance is becoming more commoditized driven by an abundance of capacity, online applications, and brokers trying to streamline the process by selecting key carriers.
Conversely, underwriters are becoming more granular with how they approach large national accounts.
This story in an excerpt of the original. The content originally appeared in Cyber Front Page News.
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Josh is an Editor at Advisen in the Research & Editorial division. He is the lead editor responsible for several of Advisen’s Front Page News editions and he also originates custom research on behalf of Advisen’s largest insurance company clients. Contact Josh at [email protected].
