Insurance Cost.
Underwriting Considerations
The costs of cyber insurance depends on many factors: the limit and scope of cover, your risk profile, claims history, the insurers’ aggregation, geopolitics etc. While some factors are within your control, many times, we are the price takers.
Operation Costs
For the insurers, their operational costs will include management overheads, policy administration, marketing, commissions and distribution etc.
Claims Expenses
In addition, there are the costs related to the claims pay out, professional fees in engaging cybersecurity experts, law firms, forensic accountants etc.
CASL Efficiency Advantage
CASL consolidates the demand for essential cyber cover from our Castle plan subscribers and works directly with our Strategic Alliance Members to lower the total costs by reducing the insurance policy administration, marketing, commissions and distribution costs, and ensuring our subscribers are cyber protected to reduce the claims expenses.
The Deductible Strategy
Deductible is the amount that we would pay for any admissible claims. This is a good way to keep premiums low because the insurers would not have to incur the costs of claims processing for claims of low quantum which are usually high frequency in nature.
CASL will work with our Castle plan subscribers to contain such minor incidents internally such that a deductible of $2,500 can effectively be used to lower premium costs.