Original text here from Patrice Bernard (LinkedIn)
At the intersection of the proliferation of connected devices and the relentless rise in various types of deficiencies and malpractices, cyber insurance is undeniably a significant trend. With its new affinity-based offering, the American company Marsh is paving the way (albeit indirectly) for its gradual integration into our everyday lives.
In today’s world, it is becoming increasingly difficult (if not impossible) to indefinitely avoid phishing attacks, ransomware, and other malware on personal computers, tablets, or phones. As these devices have become repositories for critical events and information, the repercussions of even the smallest incident can be disastrous.
For this reason, alongside similar efforts aimed at businesses, insurance companies are developing dedicated consumer protections. However, as is often the case when trying to persuade individuals to protect themselves against a hypothetical future risk, one whose potential impact they may not fully grasp, spontaneous enrollment rates remain low.
The most effective solution then is to incorporate cyber coverage into existing products. Some players offer this coverage, generally as an option, within their policies, while Marsh now provides businesses with a policy adjustable to the specific exposure of the targeted customer base, ready to support and enhance any type of transaction in a pure 'embedded finance' logic.
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Depending on the case and the choices of the adopting company, it covers a comprehensive range of personal risks, from virus infections and extortion attempts to identity theft, account hijacking (such as on gaming platforms), online harassment, privacy or reputation damage, and delivery failures (e-commerce), among others.
With a modest price announced at less than one dollar per month per insured, Marsh primarily targets service providers—sports associations, professional organizations (including doctors), employers looking to enhance their employee benefits—highlighting both the competitive differentiation they can achieve and the increased trust it generates among their users, which may even justify offering it for free (at least initially).
Some of these approaches, however, may seem too contrived to be truly effective. In contrast, the launch in the U.S. by HSB of cyber protection for automobiles shows a different (or complementary) path: adding specialized insurance to every product susceptible to internet dangers, regardless of form. Isn’t this just as much a matter of common sense as traditional warranties against breakdowns?
The hesitations and experiments, particularly around distribution models, are naturally to be expected for an emerging line of business, requiring a simultaneous grasp of operational mechanisms and client perceptions (both individual and corporate). Given the current magnitude of threats and their ongoing expansion, there is now an urgency to optimize these offerings in all their aspects.
