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Digital EditionGallagher’s Darryn Ratliff on the Promise of Generative AI and How to Break Into the Cyber Insurance Space
Come see the Stars! As part of our ongoing coverage of the best brokers in the commercial insurance space, Risk & Insurance®, with the sponsorship of Philadelphia Insurance, is expanding its coverage of the Rising Stars, those brokers who represent the next wave of insurance brokering talent.
Look for these expanded profiles on the Risk & Insurance website and in your social media feeds throughout the year.
Here’s Darryn Ratliff, regional director, cyber liability practice, Gallagher, and a 2024 Cyber Power Broker winner.
Risk & Insurance: In which commercial lines are your clients struggling to put together adequate coverage?
Darryn Ratliff: As an expert in cyber insurance, I’ve observed that prospective clients often struggle with determining the appropriate amount of cyber insurance coverage. While peer benchmarking can provide some insights, the use of loss modeling and claim simulations has significantly enhanced our clients’ understanding of their risks. This approach highlights the potential pitfalls of simply purchasing coverage limits similar to those of average peers, who may themselves be underinsured.
At Gallagher, we use peer benchmarking as a supplementary tool, but we go further by educating our clients on their specific risks. We focus on their maximum probable loss by utilizing loss simulations tailored to their industry, size and risk profile.
R&I: On the claims side, what’s working well and what’s not?
DR: A notable area of success within the cyber insurance landscape is the improved claims-handling process that many carriers have implemented.
Most carriers now offer a 24/7 hotline and email service, enabling clients to promptly initiate the claims process in the event of an incident. This service facilitates immediate connection with a breach coach and essential incident response vendors.
Such a streamlined process significantly reduces the stress associated with managing these incidents, particularly for clients who do not have incident response vendors on retainer.
An area for potential improvement within the claims environment of the cyber insurance market is the vendor approval process. Typically, carriers require insureds to utilize pre-approved vendors in the event of an incident. It is crucial for insureds to clearly understand the level of flexibility, or lack thereof, regarding the use of their preferred vendors.
This understanding can significantly impact whether this portion of the claim is covered by insurance or must be paid out-of-pocket by the insured.
R&I: Where do you see generative artificial intelligence making a difference in your team’s work?
DR: Generative AI significantly enhances the efficiency and effectiveness of our team’s work across various areas.
Internally, AI serves as a valuable tool, enabling us to query our environment using Gallagher’s data. It assists in tasks such as generating outlines for lengthy documents, crafting concise emails, summarizing meeting transcripts, and analyzing articles for positive and negative sentiment, among other capabilities.
In the hands of our clients, generative AI plays a pivotal role in shaping our team’s work by understanding our clients’ use of its applications and potential impact on insurance renewals. At Gallagher, we prioritize educating our clients on the advantages and disadvantages of generative AI through the publication of white papers and the hosting of webinars.
As generative AI represents the future, it is crucial for our team to remain informed about the risks and benefits it presents to our clients.
R&I: What advice would you give to a younger person that is seeking to break into this industry?
DR: The cyber insurance industry is still in its formative stages and is continuously evolving within the broader insurance sector.
For those aspiring to enter this field, I recommend investing in education and building a strong professional network. A cyber insurance expert should possess three essential traits: a comprehensive understanding of the available cyber policies in the marketplace, robust market relationships, and a keen insight into cyber exposures across various industries and operations.
Since no industry is immune to cyber events, it is important to educate yourself on both the differences and similarities among industries. Additionally, develop the skill to effectively communicate these exposures in a way that is easily understandable for clients and prospects. &
