Table 1: Cyber Security Ecosystem advantage
The success strategy with Cyber Security Ecosystem
As mentioned earlier, SMEs have distinct risk profiles and limited resources compared to large corporates. With these unique characteristics, CSEs are well-positioned to be an acceptable and the preferred mode of risk mitigation for SMEs.
Further, CSE is helpful in creating a virtuous cycle for clients and insurers by successfully collaborating risk mitigation with evolving technologies. As insurance protection and monitoring is in-built, it helps to reduce the possibility of attacks and enhance trust between the client and the insurer.
Innovation, cross industry collaboration and efficient delivery model are three crucial success factors that will shape the end customer experience and ultimately, success of the CSE. Insurance companies need to invest in building these elements as a part of their strategy.
Two other elements that are crucial in the success of a CSE are Price Points and Go to Market plan. Pricing options need to be evolved with a considerable flexibility for the SME customers. The pricing models need to be built basis the bundled services, SME composition, industry types and number of devices covered.
Go to Market strategy will largely depend on the ability of the insurers to bring up new distribution partners i.e. resellers, IT vendors, service integrators etc. who influence the decision making by SMEs. Crafting a value proposition for each of these partners will largely determine the success of the initiative.
Towards cyber resilience
Thought leadership and execution capabilities of insurers in binding the above elements together will certainly help them gain cutting-edge market leadership in one of the biggest growth opportunities in global insurance market. Post COVID-19 pandemic, businesses will use technology at a much larger scale. Cyber risks will continue to emerge and SMEs will scout for better ways to mitigate them. The time is just right for insurers to start and build a Cyber Security Ecosystem to reap maximum benefits.
5https://www.gminsights.com/industry-analysis/cybersecurity-market Market estimate 2018 by Global Market Insights, Inc. & Zion Market Estimates
https://www.zionmarketresearch.com/news/cyber-insurance-market Zion Market Estimates