- Google teams up with Allianz and Munich Re for an underwriting solution.
- The consortium aims to simplify the risk assessment of corporate cyber insurance, which has historically been difficult to underwrite.
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Google has teamed up with two global insurers to launch a solution for commercial cyber risk insurance, aiming to simplify the insurance application and risk assessment process, per a press release.
The solution, dubbed Cloud Protection +, can be used by customers enrolled in Google's Risk Protection Program, which also offers other services such as assessing a customer's security risk posture. Cloud Protection + provides clients with protection against cyber incidents within their own corporate environment, as well as incidents related to Google Cloud.
Insider Intelligence believes that leveraging Google's data expertise can help insurers better assess cyber risk, which has historically been difficult to do—highlighting the strength of such consortiums. With the solution, organizations can gain actionable insights into their risk exposure and take targeted measures to reduce or cover their risks.
When applying for cyber coverage, organizations can share the risk report with insurers, simplifying the application and underwriting process. Cyber risk is a growing concern for insurers: Hiscox, for example, reported insured cyberlosses of $1.8 billion in 2019, a 50% increase year over year.
That said, cyber insurance is also a huge revenue opportunity due to the existing coverage gap: The cyber insurance market is expected to grow to $28.6 billion by 2026, from just $4.85 billion in 2019—showcasing the importance of getting the line of insurance right. Cyber insurance is notoriously difficult to underwrite due to the changing nature of the segment and lack of historical data. By teaming up with a tech giant like Google, insurers can get access to high-quality data analytics to help them better assess companies' exposure.
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