Securing Digital Safety: CRC Insurance's Perspective at FF Virtual Arena Event #338
In the dynamic world of insurance, CRC Insurance Services is making its mark, particularly in the burgeoning field of cybersecurity. With a focus on disciplined underwriting and robust security controls, CRC is navigating the complexities of this rapidly evolving market.
As of 2023, the cybersecurity insurance market is experiencing significant growth, with a global value of approximately $21.37 billion in 2024 and projections to reach $64.49 billion by 2030[1]. This growth is driven by the increasing number of cyberattacks, digital activity, and stricter privacy regulations, which have heightened the demand for coverage protecting against financial losses, legal liabilities, business interruption, and reputational harm.
However, insurers, including CRC, face challenges such as limited underwriting capacity and rising reinsurance costs, leading to tighter terms and higher premiums, particularly for high-risk sectors like healthcare and finance[1]. In response, the market is adapting by innovating around emerging risks, improving claims handling, and breach response efficiency[1][2][3].
CRC Insurance Services, active in various insurance areas including property, casualty, benefits, and life insurance, is addressing these challenges head-on. Their approach is centred on affirmative controls such as Multi-Factor Authentication (MFA), email security, Endpoint Detection and Response (EDR), and backup processes across accounts. They adjust these standards based on the size and risk profile of the business[2].
Despite a current softening in the cyber insurance market, CRC maintains strict requirements for larger accounts[2]. They are also expanding their risk management and loss control services to improve underwriting quality and claims outcomes[2].
In addition, CRC advises careful coverage selection for clients, particularly amid complex issues like coverage pitfalls. They offer specialized expertise through wholesale partnerships to help agents secure appropriate cyber and terrorism coverage aligned with emerging threats[2][4].
Garrett Koehn, President and Chief Innovation Officer at CRC Insurance Services, plays a pivotal role in CRC's cybersecurity work. With over two decades of experience in San Francisco's startup scene, Koehn has been focusing on the Insurtech market for the past eight years[5]. He discusses the transformations in the types of risks insurers manage today, including cyber risks, climate change, and social inflation[6].
Partnerships with startups, such as the one with Herald API, enable CRC to tap into innovations that might otherwise be cost-prohibitive or time-intensive to develop internally[7]. CRC's ongoing discussions about building solutions in-house or partnering with external specialists are informed by cost, time, and scalability considerations[8].
The insurance industry is shifting towards more flexible ecosystems and closer collaboration with fintech and Insurtech. This transformation is producing a somewhat stable but cautious market, where disciplined underwriting, strong security posture requirements, and expanded risk management services are critical for obtaining coverage[2].
In Europe, wholesale distribution models have not been widely adopted compared to the US[9]. However, large insurance firms are streamlining efforts by focusing on major wholesale brokers to access the retail market more effectively[10]. Cyber policies have expanded to include first-party coverage for direct costs, monitoring services, and even parametric ransomware payments[1].
The digital revolution has reshaped risk profiles, created new product categories like cyber and parametric insurance, but traditional challenges such as distribution remain largely unresolved[1]. As the cybersecurity landscape continues to evolve, CRC Insurance Services remains at the forefront, adapting and innovating to meet the needs of its clients in this dynamic market.
[1] Cybersecurity Magazine [2] Insurance Business America [3] Insurance Business Magazine [4] Business Insurance [5] San Francisco Business Times [6] Business Insurance [7] Insurance Business America [8] Insurance Business Magazine [9] Insurance Business Magazine [10] Insurance Business America
- CRC Insurance Services, as featured in publications like Cybersecurity Magazine, Insurance Business America, and Business Insurance, is leveraging technological advancements in areas such as Multi-Factor Authentication (MFA), email security, Endpoint Detection and Response (EDR), and backup processes to address the challenges posed by the rapidly growing cybersecurity insurance market.
- Engaging in strategic partnerships with fintech and Insurtech startups, such as Herald API, CRC Insurance Services is positioning itself to stay ahead in the evolving cybersecurity landscape, advising clients on coverage selection and offering specialized expertise through wholesale partnerships to ensure appropriate cyber and terrorism coverage aligned with emerging threats.
