KALEIDOSCOPE Podcast EP 04: Cyber Insurance

KALEIDOSCOPE brings you unique new perspectives on the world of insurance through discussions with industry leaders, influencers, and idealists.

Pat Costello is an insurance industry veteran, entrepreneur, and fellow podcaster. In 2015, Pat and his brother Mike co-founded a cyber specialty MGA, EVOLVE Insurance. Pat has worked at all levels of the insurance distribution chain, with experience at the retail, wholesale, carrier, and MGA levels.  

“I believe that there needs to be more cyber security associated with cyber insurance. I think the two need to be paired up in a regular way. We see a lot of folks that we compete against in the marketplace that are not necessarily using cyber security. A lot of underwriting is very simplistic and gathering very little data on the risk. From a cyber insurance standpoint, we need to be getting as much intel as we possibly can, not only to understand how these hacking attacks occur but also to learn how to help our clients recover from them.” – Pat Costello

Today on the Kaleidoscope Podcast:

  • Why Pat is passionate about the insurance industry
  • Evolve’s origin story and how their marketing and branding serves as a point of differentiation
  • Breaking down cyber insurance
  • The risks of cyber and how the insurance industry should respond
  • Ransomware coverage and beyond
  • Disruption in the insurance industry

Key Takeaways:

  • PC brokers are picking up the ball to communicate the importance of cyber. The market is hardening, rates are going up on average of about 40%, claims are coming in and capacity is pulling out. We believe less than half of business owners in the US have purchased cyber insurance and the majority of those who are purchasing these policies are not adequately covered.
  • Small to medium size businesses are the low hanging fruit for hackers, especially when it comes to ransomware and social engineering, because they typically do not have any of the protocols or cyber security in place to deal with those hacking attacks. It’s important for brokers to be aware that just because you have a small to midsize business as a client does not mean they have a better cyber risk profile then a very large name brand company.
  • The insurance industry must get better at marketing itself to folks out there to show what the insurance industry is really like. There are many false assumptions about this industry and insurance marketers and recruiters must improve.

Connect with today’s guest Pat Costello

Connect with Kaleidoscope co-host Frank Pennachio

Connect with Kaleidoscope co-host Susan Toussaint

This episode was brought to you by……

ReSource Pro’s Growth Solutions practice, a consulting and training organizations for insurance industry professionals. Our business objective is to provide agencies and carriers with the necessary technical and sales insights to elevate sales conversations, compete more effectively, and grow organically.

Connect, Learn, Share

Thank you for joining us on this week’s episode of Kaleidoscope. For more resources, visit the Growth Solutions website, or reach out to Susan Toussaint at susan@resourcepro.com. Subscribe on your preferred podcast platform so you never miss an episode. Love what you’re learning? Review the Kaleidoscope Podcast and share your favorite episodes with friends and colleagues!