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Today we’re very excited to announce a new tool appearing in all Corvus Smart Cyber quotes: the Ransomware/BI Cost Calculator.
Long-duration ransomware attacks are driving increased Cyber Insurance claim activity -- a trend that has been developing for years and is continuing to impact the industry. Amid this trend, Business Interruption has become an essential coverage in any Cyber Liability or Tech E&O policy, and thereby a critical component of the advice brokers provide their clients on how much coverage they need to avoid being underinsured.
A key part of this conversation between brokers and their clients is a reliable quantification of the financial risk clients face. That’s where the Ransomware/BI Cost Calculator comes in: a way to easily access tangible and objective information about risk to drive the discussion around coverage for a Cyber or Tech E&O policy.
We gather feedback from brokers on a regular basis to inform every aspect of our products, platform, and tools. In fact, we brought together brokers in person in February for our inaugural InnoSummit, a day-long session for the Corvus team and our brokers to learn from one another.
Out of conversations at the Summit and elsewhere, we heard that brokers needed a more objective answer to questions their clients have around how much Cyber Insurance to buy -- particularly around limits for Business Interruption agreements.
There are a number of online cost calculators available (and brokers we spoke with were well aware of them) -- but they tend to be complicated to use and explain, and require additional information that brokers may not have on hand. What’s more, many calculators still emphasize the costs around exposure of sensitive information, like PII records, while the risk environment has evolved. Shutdowns of business due to ransomware are driving the conversation today.
In short, the tools that existed in the market were not easy additions to a busy broker’s workflow, and we wanted to create that seamless experience.
Even in normal economic conditions, it’s not easy to explain appropriate insurance limits to purchase for something like cyber insurance. The threat landscape changes year to year, and so does the way a typical business uses technology.
Now, with the economy on the brink, these challenges are amplified as businesses scrutinize every expense in an effort to stay afloat. For businesses that are struggling, every dollar counts. They’re worried about over-buying, wasting money that could be spent elsewhere. But they cannot risk underbuying, either, lest a ransomware attack turns into an existential event, as is unfortunately often the case for uninsured businesses.
We want to provide the tools to empower brokers in their conversations about coverage, at this critical time and in the future, to ensure that every business can get the right amount of insurance for their risk.
Our calculator provides estimates for the financial loss a business would endure for a hypothetical shutdown of 15 days, 30 days, and 60 days.
It reaches these estimates using the industry class and revenue provided in a Corvus Smart Cyber or Smart Tech E&O application, with help from benchmarks and assumptions based on data and expert input from our data science and Breach Response teams. These include industry-based estimates for Cost of Goods Sold (COGS) and Percentage of Revenue Reliant on Operational Computer Systems.
Before reaching the final figure, we add in other common costs that accrue in a ransomware situation and are covered by other agreements in a Smart Cyber policy. With the all-in total estimates, brokers can recommend the appropriate coverage.
For a full walkthrough of the calculator, click below to see our video with Corvus VP of Smart Breach Response, Lauren Winchester. If you’d like an even more in-depth discussion, join us next week for our webinar!