Artificial intelligence (AI) is rapidly becoming a game-changer in numerous industries. And with the rise of Insurtech, insurance is no exception. With cyber risks increasing in prevalence and sophistication, independent agents are turning to AI to help them navigate the ups and downs of selling cyber insurance.
AI currently has the power to learn from data, make predictions, and find patterns. This has made AI a hot topic for those looking to improve how they sell, assess, and underwrite cyber policies.
In this article, we’ll explore the impact of AI in cyber insurance, the benefits and challenges associated with its implementation, and potential implications for those seeking cyber coverage.
The Impact of AI in Cyber Insurance
It’s well known that traditional risk assessment models struggle to keep up with the rapid evolution of online risks. Given recent advancements, AI is well-positioned to handle those rapid changes.
For example, insurers are currently using AI to:
- Analyze large amounts of data from sources like dark social and network logs.
- Identify potential threats to a business's cybersecurity, including recognizing things like weak password management, high-risk practices, or vulnerabilities in a network.
AI is also being used to automate non-revenue-generating tasks like claim triage. It can be trained to spot potentially fraudulent claims and flag them for human review. With the new ability to cross-reference claim data with external data sources like news reports or social media activity, insurers can better assess the validity of claims.
AI can be used by Independent Agents to improve their small business customer experience. Chatbots powered by AI provide instant assistance to customers seeking help with cyber policies. Chatbots can also answer common questions about the cybersecurity application process. This way current and future customers can get their needs taken care of on demand.
Another way AI is improving the cyber insurance process for all parties involved in product development. With the help of AI, insurers can analyze customer data to identify trends and patterns in customer cyber needs. That data can then inform the development of new cyber products and services that are a better fit.
How Relay Uses AI in Cyber Insurance
The complexity of cyber threats continues to be a significant challenge for Independent Agents. Cyber insurance covers a wide range of risks and threats. This makes it difficult to explain the risks and threats to customers effectively.
On top of that, there’s the technical jargon. Cyber policies often contain complex terminology that can be difficult for readers to understand. Customers who may not be familiar with technology or cybersecurity practices can walk away frustrated.
To help mitigate this, Relay’s latest feature aims to simplify the communication of complex cyber terms. With the help of AI in cyber insurance, Independent Agents can use this new feature to break down complex insurance terms in a clear and concise way.
This new feature adds to the eases of quoting and placing through Relay by allowing Independent Agents to get complex cyber policy questions answered in 500 characters or less.
- Independent Agents can now provide clients with accurate and easy-to-understand information about their cyber insurance policy.
- Customers can feel more confident investing in cyber once they understand what they’re paying for.
- Independent Agents can worry less about miscommunication and misinterpretation risks.
Leveraging AI to get a better grip on cyber insurance concerns will only grow in popularity. With cyber risks continuing to evolve and become more sophisticated, insurers and Independent Agents must embrace the potential of AI to stay ahead of the game.
The use of AI in cyber insurance is not only a means to keep up with the evolving threats but also to improve the customer experience by providing personalized solutions. With the help of AI, cyber underwriting and claims processes can be streamlined, further improving efficiency and reducing costs. Overall, the use of AI in cyber insurance has the potential to revolutionize the industry, making it more responsive, efficient, and effective in managing cyber risks.