Zywave’s Cohen: Better broker education will drive cyber premium growth

Zywave senior vice president Jeff Cohen has commented that the insurance software provider’s Cyber Quoting platform aims to address a significant gap in the industry: the need for better broker education to drive premium growth.

Cohen explained that cyber insurance is a newer area where coverage options can vary greatly, and brokers need more context to make informed recommendations to clients.

"The marketplace needs new premium, and the only way to get there is to do a better job of educating brokers," Cohen said.

Unlike established coverages like general liability or property insurance, Cohen noted, "Cyber is a whole different category."

Zywave’s Cyber Quoting platform was launched in April as a centralised quoting platform for global cyber insurers and US distribution partners.

The platform was built to help brokers see beyond just the price when evaluating insurance options, according to Cohen.

“In the marketplace, the capacity providers are not doing enough to help educate brokers at the point of getting a price. If they are not careful, they're all going to go right down the path of ‘lowest price wins,’” said Cohen.

To counter this trend, the Cyber Quoting platform brings together risk management services, benchmarking tools, and unique data to make each quote more informative. Cohen added: “An educated quote should make me smarter when I see it - not just you ask for a price.”

Currently, Zywave has policies available on the platform from six carriers, including Coalition, Tokio Marine, Cowbell, and CFC, with four additional carriers set to join. This wide array of carriers, Cohen noted, enables Zywave to provide bindable quotes with plenty of capacity.

“We have markets, and we have plenty of capacity,” he explained.

The platform also includes benchmarking tools to support brokers in making more informed recommendations. Cohen highlighted that brokers can compare options based on severity, limit adequacy, and other key metrics.

“Putting a benchmark in front of that provider – what do other companies like your client buy? The severity comparisons, the limit adequacy…it’s not sufficient. And this is why those elements matter,” he explained.

With these tools, brokers can better illustrate how a client’s current or proposed coverage stacks up against industry standards and potential risks, according to Cohen.

Cohen emphasised Zywave’s agnostic stance, meaning that brokers can use Zywave’s tools in conjunction with others.

“We’re not looking for an exclusive here. You can use other tools as well; you don’t have to rely 100 percent on ours.

“We believe that the best time to educate a broker is in that point of sale, that transaction space, that I-need-a-price moment,” Cohen added.

As the next phase rolls out, Cohen says that Zywave is working on further expanding the platform with additional content and tools for side-by-side comparisons of similar products, aiming to continue improving broker education and drive cyber insurance premium growth across the marketplace.