As the threat of cyber attacks continues to rise, businesses of all sizes are facing an increased need for comprehensive cyber insurance coverage. In response to this growing demand, QBE North America has partnered with Managing General Agency (MGA) Converge to launch a new cyber insurance program. With Converge as the program administrator, this initiative aims to provide tailored cyber protection to small and mid-sized enterprises (SMEs) in the United States.
Distribution Structures
The program is designed with two distinct distribution structures, each catering to specific revenue focuses and cybersecurity data access formations. These structures enable QBE North America and Converge to efficiently target various market segments with tailored coverage solutions.
ConvergeElements™
One distribution structure, ConvergeElements™, is designed to offer primary and excess cyber coverage to companies with up to $100 million in revenue. This coverage is made available through select agents and brokers who specialize in providing cyber insurtech solutions. By working closely with these trusted partners, ConvergeElements™ ensures that eligible companies can access comprehensive cyber protection tailored to their specific needs and risk profiles.
ConvergeConnect™
The second distribution structure, ConvergeConnect™, focuses on providing primary cyber coverage to companies with up to $750 million in revenue. This coverage is made accessible through prequalified technology provider partnerships. By forging strategic alliances with technology providers, ConvergeConnect™ guarantees that eligible companies have swift access to reliable cyber insurance coverage that aligns with their business operations and risk mitigation approaches.
Proprietary Technology Platform
One of Converge’s strengths lies in its proprietary technology platform, which facilitates swift and effective underwriting of cyber risks. By collecting and analyzing data from various sources, including insured-specific data from behind-the-firewall security systems, their platform enables accurate risk assessment and tailored coverage solutions. This ensures that companies receive the most suitable cyber insurance coverage based on their unique risk profiles.
Data Access via Partnerships
ConvergeConnect™ partners play a crucial role in providing Converge with access to insurance-specific behind-the-firewall security and underwriting data. This access, coupled with Converge’s advanced analytics capabilities, allows for a comprehensive understanding of an insured company’s cyber risk exposure. By leveraging this information, Converge can offer highly targeted coverage solutions that address specific vulnerabilities and potential threats.
Alignment of Underwriting Approaches
QBE North America’s control-based underwriting approach aligns exceptionally well with Converge’s ability to access and analyze detailed cyber risk information. By combining QBE’s expertise in risk assessment with Converge’s advanced underwriting capabilities, the program ensures a thorough evaluation of cyber risks, enabling the delivery of precise and comprehensive coverage options.
Targeting Small Businesses
Traditionally, cyber insurance has predominantly been accessible to larger enterprises. However, through the Converge program, QBE North America aims to target small businesses, expanding their reach beyond their retail Cyber practice. Recognizing that SMEs are equally vulnerable to cyber threats, this program offers tailored coverage options to help protect their operations, finances, and reputation against cyber risks.
Non-Admitted Cyber Coverage
As part of the program, cyber coverage will be provided on a non-admitted basis through QBE North America’s A.M. Best “A” rated insurance companies. This non-admitted coverage offers flexibility and broad protection for eligible companies, ensuring they have access to tailored coverage solutions, regardless of their specific industry or risk profile.
Tapping into Growing Need
The partnership between QBE North America and Converge addresses the pressing need for cyber protection among small and mid-sized enterprises in the United States. With cyber attacks becoming increasingly prevalent and sophisticated, businesses of all sizes must prioritize safeguarding their digital assets. This program leverages QBE North America’s vast experience in the insurance industry and Converge’s advanced underwriting approach to bridge the cyber insurance gap faced by SMEs. By offering tailored coverage options and data-driven solutions, QBE North America and Converge aim to empower SMEs to navigate the evolving cyber landscape with confidence and resilience.
In conclusion, the launch of QBE North America’s new cyber insurance program in partnership with Converge represents a significant step forward in enhancing cyber protection for small and mid-sized enterprises. By utilizing tailored distribution structures, proprietary technology platforms, and strategic partnerships, this program seeks to address the unique cyber risks faced by SMEs. As cyber threats continue to grow in scale and complexity, comprehensive insurance coverage becomes critical for businesses of all sizes. With this program, QBE North America and Converge aim to provide SMEs with the necessary tools and resources to safeguard their operations, protect their stakeholders, and mitigate potential financial losses caused by cyber incidents.