Cyber insurance company Resilience has announced the launch of a new modular policy production process, making it the first company to embrace modularity for cyber insurance.
Unlike traditional cyber insurance policies, which can be complicated and difficult to modify, modularity allows brokers to offer customized policies with negotiated coverages specific to a client’s exposure. Customizing coverages in a traditional cyber policy requires either a complete overhaul or endorsements that can make it difficult to understand what the policy actually covers, Resilience said. These changes can take days or weeks.
Modularity allows changes to the policy to be updated immediately and reflected in accordance with the policy. The process allows for broker-specific builds that are approval-free but edit-friendly, with plain language, fewer pages, and tracked edits.
“Cyber risk is complex and can be complicated, but the policy document doesn’t need to be,” said Sam Lisi, chief product officer at Resilience. “This modular policy not only provides clarity for the insured reading the policy, but also contractual certainty for our brokers and their clients in an ever-changing cyber risk environment.”
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The company’s modularity process includes three layers:
- Smart assembly of policy content: Based on the underwriter’s insurance agreement selections, only relevant content will be added to the policy. This allows Resilience to continuously introduce new insurance agreements in response to changing market conditions without the need for policy updates or amendment endorsements.
- Online Policy Changes: These allow the underwriter to choose from a set of existing amendments without dealing with the confusion that can come from higher volumes of amendment endorsements. Online policy amendment pool can be expanded easily
- Dynamic text fields: Open text fields that can be filled with a variety of inputs. They are changed so frequently that it makes more sense to leave them open for subscribers to enter rather than hard-coded with fixed options that may be insufficient, Resilience said.
“Every risk is unique,” said CJ Pruzinsky, Resilience’s chief underwriting officer for North America. “Our modular policy streamlines the process for brokers and their clients, allowing for a clear and easy-to-read policy document. It sounds simple, but it’s a game changer.