Learn about actual and potential costs
How much should I pay for Cybersecurity Insurance?
What is the average price of Cybersecurity Insurance?
This procurement report includes pricing information to help you purchase Cybersecurity Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Cybersecurity Insurance been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Cybersecurity Insurance yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Cybersecurity Insurance?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Cybersecurity Insurance with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
The cybersecurity insurance market exhibits a moderate level of market share concentration. The largest four vendors in the market Chubb, AXA XL (a subsidiary of AXA), AIG and Beazley account for just under 50.0% of total market revenue. About 3,000 vendors operate in this market, including direct insurance providers and... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
How does your insurance coverage differ from competitors?
What overhauls to your business model, if any, might you make as competition in the market increases?
How has your business adjusted to the growth in the cybersecurity insurance market?
How do you obtain new clients and retain their business?
Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?
What types of discounts do you offer for bundled services?
What policies do you recommend for a buyer in my market?
What standard services does the premium entail?
What services do buyers typically purchase in conjunction with cybersecurity insurance?
What is your process for responding to claims requests?
On average, how long does it take for a client to receive a payout following a claims request?
What percentage of your claims requests are processed? What percentage are rejected?
How often do processors erroneously reject claims requests?
How does your company mitigate its risk of bankruptcy?
How does your company hedge against any systemic risks that affect the market?
How do you ensure your company has enough cash to honor claims?
What evidence supports your ability to honor contractual liabilities to buyers?
Do clients have a dedicated account manager?
Through what mediums may a client contact you?
Do you offer 24/7 customer account support?
On average, how quickly do you respond to client queries?
How long have you been operating in this particular market? How long have you been providing insurance altogether?
What are the particular challenges of servicing our industry?
How long have you provided cybersecurity insurance to your longest tenured client?
Could you provide a list of client references along with relevant contact information?
Amidst widespread health concerns, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
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Key elements for every RFP
What should my RFP include?
Buyers should state the desired deductible levels and coverage limit, if available.
Buyers should indicate their preferred method and frequency of payment.
Buyers should refer to the Benchmark Price section of this report to gain a better understanding of average premiums in the market.
Buyers should consider a vendor's past experience providing cybersecurity liability policies.
Buyers should evaluate vendors' financial health.
Buyers should assess the extent of coverage and exceptions to coverage that vendors offer.
For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.
Buyers should state how long the contract period should last.
Buyers should indicate when bid proposals are due.
Buyers should include when interviews and bidder meetings will take place.
Buyers should indicate on which date the bid award will be announced.
Buyers should specify what date they wish the policy to start on.
Evaluate major factors to mitigate risk
How risky is the supply chain?
Supply chain risk for cybersecurity insurance has been moderate in the three years to 2020. Providers could therefore potentially face unexpected expenses due to disruptions to their supply chains. As a result, they may be less willing to negotiate on premiums, which weakens buyer power. Insurance providers source inputs... Subscribe to learn more.