Howden launches cyber insurance platform for SMEs

Howden has announced the launch of a “pioneering” cyber insurance platform tailored specifically for small and medium-sized enterprises (SMEs), addressing a critical gap in the market by simplifying the purchasing process.

This new platform is designed for businesses with revenues up to $250m and allows them to acquire cyber insurance in just four straightforward steps, eliminating the need for lengthy questionnaires and complex jargon.

The platform, backed by three global insurance carriers, offers coverage limits of up to $6m. It ensures that every client is pre-approved and eligible for an insurance proposal with only four pieces of information required: Name, industry, annual revenues, and website. Additional data is collected via open application programming interfaces (APIs), maintaining high underwriting standards despite the streamlined process.

Historically, the cyber insurance market has underserved SMEs, with only 14% currently having cyber insurance coverage.

Jean Bayon de la Tour, international head of cyber at Howden, stated, “Cyber insurance is predominantly purchased by large corporates because they typically have the resources to navigate an advanced procurement process. Our new cyber platform addresses this imbalance by providing SMEs with a simple process to obtain top-quality cyber insurance cover in just a few hours.

“This includes 24/7 assistance and access to advanced data and analytics software like Cyberwrite, which offers valuable insights to clients before, during, and after policy inception. We also support our clients and brokers with an AI-powered bot to answer all questions about cyber risk and cyber insurance. With best-in-class terms and conditions, including enhanced wordings, no sub-limits on key covers, and breach response, Howden is committed to leveraging the power of insurance to defend and protect all businesses, regardless of their size.”

Shay Simkin, global head of cyber at Howden, emphasized the urgency of providing SMEs with robust cyber insurance solutions. “Howden has accessed the insurance market’s pool of cyber expertise to close the protection gap by ensuring that SMEs can access advanced cyber insurance solutions. 60% of SMEs without cyber cover face bankruptcy within just six months of experiencing a cyber-attack. Our new platform ensures they have the knowledge and tools needed to make their businesses more resilient. Attacks on SMEs are increasing, and at Howden, we are responding by widening access to cyber insurance across different sectors of the economy, ensuring that it remains relevant to all.”