A Look into Pepper and Embedded Insurance’s Collaboration to Revolutionize Cyber Insurance for Consumers and SMBs

The Rise of Cyber Insurance for IoT Devices

Cyber Insurance for IoT Devices Offered through Pepper IoT Platform-as-a-Service

Consumers and small-to-midsize businesses (SMBs) who use Internet of Things (IoT) devices to manage their smart homes and businesses now have a new option for obtaining cyber insurance. This option is available if their service providers are using the Pepper IoT Platform-as-a-Service (PaaS) back end. On June 28, Pepper announced a partnership with cyber insurance broker Embedded Insurance (EI) to offer insurance coverage for IoT devices.

A New Approach to Cyber Insurance

Unlike traditional cyber insurance applications, this new approach allows users to opt for a minimum of $10,000 per device in coverage without requiring them to submit lengthy applications. Users can add the insurance coverage at the time of purchase from their service provider or purchase it later. Scott Ford, CEO of Pepper, highlights the limited options available for consumers to obtain comprehensive cyber insurance for their IoT devices. By offering an actual cyber insurance policy, rather than just a rider to an existing home policy, this partnership provides measurable coverage for common cyber threats.

Simplicity and Ease of Obtaining Policies

Toby Coleridge, the chief product officer at Embedded Insurance, emphasizes the simplicity and ease of obtaining a policy through their company. Customers are not burdened with long applications and complex underwriting processes. The policies offered by Embedded Insurance are underwritten by Chubb, the top-ranking cyber insurance carrier in 2023. Coleridge states that these policies are specifically designed to be simple to purchase, similar to off-the-shelf automobile policies. The goal is to keep the process as straightforward as possible, eliminating unnecessary complexities.

Coverage and Pricing

The cyber insurance policies offered through Pepper and Embedded Insurance cover various areas, including cyber financial fraud, cyber extortion (including ransomware coverage), identity theft, data restoration, device replacement, and cyber bullying. Policies are available starting at $5.28 per month per device, with the option to increase coverage limits up to $100,000 per device at a higher price.

The Growing Market for Personal Cyber Insurance

Coleridge identifies personal cyber insurance as a growing market. As social engineering attacks increase against individuals, the need for personal cyber insurance becomes more apparent. Many consumers are unaware of the threats they face in the digital landscape, and personal cyber insurance aims to protect them against these risks. Coleridge believes that as individuals become more educated about cyber threats, the demand for personal cyber insurance will continue to rise.

Security and Insurance: Natural Partnerships

Pepper CEO Scott Ford points out that security and insurance are natural partners. He cites State Farm Insurance’s investment in the electronic alarm monitoring security firm ADT and mentions that insurers can offer better rates to customers with proactive security controls. Similarly, Pepper‘s acquisition of Comcast’s business unit Notion, a smart property monitoring system, lowers users’ vulnerability to losses.

Partnerships Revolutionize the Cyber Insurance Landscape

The partnership between Pepper and Embedded Insurance is not unique. In the enterprise space, security operations center (SOC) and XDR vendor Arctic Wolf recently announced a similar program with cyber insurance carrier Cysurance. This program allows Arctic Wolf customers to purchase up to $1 million worth of cyber insurance at an 80% discount from standard market rates. These collaborations demonstrate how security and insurance companies can work together to address the evolving cyber threats faced by businesses and individuals.

In conclusion

The availability of cyber insurance for IoT devices marks an important development in protecting consumers and SMBs from cyber threats. The simplicity of obtaining policies and the coverage provided offer much-needed protection in an increasingly connected world. As the IoT landscape continues to expand, the demand for comprehensive cyber insurance for personal and business use will likely continue to grow. By fostering partnerships between security and insurance providers, a stronger defense against cyber threats can be built. However, it is essential for consumers and business owners to remain vigilant and educate themselves about the risks they face in the digital realm. Implementing proactive security controls, maintaining strong cybersecurity practices, and considering cyber insurance coverage are crucial steps towards protecting against potential cyber threats.