The power of partnerships in managing the cyber threat

Commercial clients imagine their carriers to be all-seeing, all-knowledgeable. After all, the client-carrier partnership is increasingly not one just of reimbursement in times of crisis, but as a partner to help prevent risk and maintain the health of their business.

Partner is the key word. Just as clients look to carriers for expertise, so the most responsive and knowledgeable carriers are forging their own partnerships to meet the challenges of today’s complex and ever-changing cyber risk landscape.

It is increasingly clear that no single entity holds enough resource to be able to maintain the ongoing deep insight and knowledge gathering that is needed to combat cyber threat. Instead, a winning strategy is one where carriers partner with best-in-class experts to access the intelligence they need at just the right time.

During their panel at Commercial Lines Innovation USA 2022 on May 10 at 10:15am (EDT), Robert Zerafa, chief operating officer of Transverse Insurance Group, and Richard Kelley, general manager Q:Cyber and Platform, QOMPLX, will describe to attendees the value of partnerships. They will discuss how partnerships enhance cybersecurity standards, as well as providing best-in-class advice on how to recognise key cyber trends, understand the challenges associated with ransomware and explain how underwriters can make the most of new technologies to mitigate cyber risk.

The spoke to Intelligent Insurer ahead of the event.

Why is a partnership so important in today’s cyber environment?

Robert Zerafa: In the last two years, especially with the rise of the remote workforce and growing international unrest, there is a threat to commercial organisations and their broader networks. That puts the spotlight on us to be diligent and up to date on all things cyber, to protect our own as well as our clients’ companies.

Richard Kelley: In the medical profession, you have experts. You go to a doctor who can focus on one thing and do it well. Cyber is so broad and so deep that you need experts who have a good handle on things. Having partners who can spend their time building a deep understanding of threats, and who can communicate it in a way that is actionable for those with less specialised knowledge, is key.

How do you get the most out of a partnership with an expert such as QOMPLX?

Zerafa: First, it’s about transparency and knowing that you are not the expert in the space. Going into the relationship with QOMPLX, I was familiar enough with what the space might require but I’m not an expert in the intricacies and the emerging threat landscape to stay ahead of it. Having that mindset and acknowledging their expertise lets us embrace recommendations to improve our overall framework and value.

A multi-partner ecosystem could be confusing for the end customer. How do you manage the ‘public face’ of the partnership?

Kelley: We’re happy to be in the background and we strive to be an extension of the partner’s team. If we’re doing our job right, there’s no distinction between us and the carrier. The proof is the output.

We’re happy to do things such as come to an event and talk together, but also to sit in the background. After all, we have our own space where we’re the experts.

Cyber is such a large space that we have people who specialise in different areas; how that works in conjunction with the overall offering depends on the partner.

Is an ecosystem model going to be the norm going forward?

Zerafa: In our space, we see lots of growth in the delegated underwriting authority model so we can target great partnerships that perform underwriting, and distribution, and client management.

In claims, we have third party administrators who manage claims handling. That model has grown significantly in the last few years, and it’s projected to keep on growing and outpacing the general commercial market.

The commercial insurance business is growing away from a single behemoth that can build its own complex capabilities across multiple functions. We like to talk about the continued reliance on the three-legged stool for harmony and balance—across our managing general agent partners, reinsurers, and transverse as the carrier—and each are vital to the success of every partnership.

We look at the niche businesses we play in and identify those partners that have a unique way of addressing risk, engaging, or going to market with distinct value propositions or manage claims costs. In the same way as we looked at QOMPLX, we can bring in an ecosystem of broader partnerships that make us better as a whole.

What would be your advice ahead of the session on managing cyber exposure?

Zerafa: Putting together the most robust view of cyber incident response and making sure that it is up to date is very important. In terms of managing our own risk as a client, we’ve been able to take advantage of emerging strategies that help us be ready in case something happens with an appropriate incident response plan as well as to use those lessons learned in evaluating our own partners and their capabilities

Kelley: One of the things that isn’t well understood is that a lot of organisations believe they are special and different, but most are using the same basic technologies. They’re using Windows or Mac and the same types of servers, and they make similar mistakes.

For carriers, taking care of your own security and making sure you’re knowledgeable with a robust programme in place, means that you immediately know what right looks like. A bit of making sure your own house is in order means you’re in a great place to look after others.

During their panel at Commercial Lines Innovation USA 2022 on May 10 at 10:15am (EDT), Robert Zerafa, chief operating officer of Transverse Insurance Group, and Richard Kelley, general manager Q:Cyber and Platform, QOMPLX, will describe to attendees the value of partnerships and discuss how partnerships enhance cybersecurity standards.

Register for your place at the event by clicking here:  https://www.commercial-lines-innovation-usa.com/