The managed security service provider SolCyber Inc. announced today that it is teaming up with Converge Insurance LLC to offer a new cyber insurance offering aimed at small and medium-sized businesses.
As part of the offer, companies need to improve their security posture to benefit from a simpler and more efficient application process, improved coverage and significant premium savings. SolCyber said that as part of its cyber insurance offering, it helps SMBs achieve a basic level of cybersecurity that covers the nine key controls widely recognized by insurance companies as critical to protecting against ransomware and other types of attacks.
That’s key, because stronger security means organizations are less vulnerable. As a result, they can benefit from better coverage and premiums that are up to 30% cheaper than alternative policies, according to SolCyber.
“If you have great security, why isn’t that recognized by the insurance industry?” said SolCyber CEO Scott McCrady. “We want to connect the two and solve the broader enterprise risk challenge. It’s simple, protect your customers with our basic coverage and reward those efforts with easy and affordable cyber insurance.”
SolCyber anticipates that its new offering will attract a lot of interest. It cites a recent study by Coro Cyber Security Ltd., which found that hackers have ramped up their attacks on midsize businesses lately. By 2020 and 2021, the number of cyberattacks on midsize businesses increased by around 50%, according to the report. That’s probably because such organizations have weaker security than larger companies that can afford to invest more.
SolCyber says that many midsize companies now see cyber insurance as an essential requirement to operate effectively and profitably. However, getting it is not easy. The application process can be incredibly complex as insurance providers want to conduct a thorough analysis of each company’s security posture and risk. This, along with the rise in attacks, explains why cyber insurance costs have increased by more than 50% in recent years.
Converge founder and CEO Anthony Dagostino said the idea of helping companies improve their security posture in exchange for lower premiums is a “game changer.”
SolCyber’s Insurance+ offering is available directly from Converge. Additionally, the offering is one of the first to be included in Marsh LLC’s Cybersecurity Marketplace Services. Marsh is a leading insurance broker looking to expand its model into the cybersecurity industry, offering a curated shortlist of cyber insurance offerings that have been validated for effectiveness, ease of administration, compliance requirements, ease of use, technology and price.