Cyber ​​insurance could become standard for small businesses, argues RPS executive

Cyber ​​insurance may no longer be a one-off choice for small and medium-sized businesses, according to Steven Robinson, national cybersecurity lead at RPS. For the executive, coverage should appear as a standard in insurance programs for this public, and not as an item that the businessman needs to remember to take out.

According to Money Times, Robinson made the statement at the Zywave Cyber ​​Risk Conference in New York in October. In the proposal, he advocates exchanging optional membership (opt-in) for exclusion (opt-out): coverage would be included and the company would have to express its intention to stay out.

The diagnosis behind the thesis is low penetration. According to Robinson's estimate, less than 25% of smaller companies have cyber insurance, indicating a lot of space to fill.

What is at stake is the way in which digital risk enters the decisions of those who manage a smaller business. Robinson states that there is still a long way to go in the segment. According to the design described, the standard does not eliminate the choice, as the company could opt out of coverage.

As far as the Money Times investigation shows, the idea is an executive position, not a rule change or a movement by regulators. It still needs to go beyond discourse to become market practice.

What changes for the investor

For those who follow insurance companies and brokers, the discussion points to a segment with low penetration and possible expansion in demand. The practical effect would depend on adoption by companies and the insurance market itself, something that cannot yet be measured based on what has been said. It is worth monitoring whether the proposal takes shape in products, commercial conditions or rules. This article is not a recommendation to buy or sell and does not predict prices.

Automatically translated from Portuguese.