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Allianz backs Coalition with new capacity to accelerate cyber growth

Coalition Capacity-Announcement Allianz

Cyber insurance, while still an emerging market, continues to grow at 25% annually as organizations navigate new risks and vulnerabilities in the digital economy. At Coalition, we experience continual interest from carriers who want to participate in this growth and support our new approach to managing cyber and digital risk: Active Insurance.

That's why I'm excited to announce that we've added new capacity from Allianz, an AM Best A+ rated global insurer, to expand capacity for our US and forthcoming UK cyber programs. This news follows earlier announcements of our capacity agreements with Vantage and Ascot Group as well as Coalition's Captive, further accelerating our growth in cyber. Keep reading to learn what this means for our broker partners and policyholders. 

Our underwriting advantage

Cyber and digital risks pose an entirely new kind of threat to organizations: they're fast-moving, dynamic, and can even amplify other business risks. This has created a new set of challenges for insurers in the underwriting process. The traditional approach to underwriting risk relies on historical data to identify patterns, which simply can't keep pace with fast-moving cyber risks. 

From the beginning, Coalition has taken a radically different approach to underwriting and cyber risk assessment. Using just an organization's domain, we're able to enumerate their public-facing assets and identify critical vulnerabilities that could leave them exposed to attacks. This technology advantage enables us to spot new threats quickly and adapt our underwriting to address new vulnerabilities.

As a result, we've built a sustainable, high-performing book of business, despite the broader market challenges. The technological advantages in underwriting have enabled Coalition to establish a diverse client base across geographies, technologies, and sizes. With this diversification of risk, we've built a unique portfolio of policyholders, enabling Coalition to understand and manage aggregation risk as well as sustain industry-leading loss ratios. These factors have enabled significant interest in our programs from forward-looking carriers, and we are excited to welcome Allianz as we continue to grow. 

The power of Active Insurance

Beyond our initial underwriting scan, we also provide ongoing protection to all policyholders. This includes industry-leading security tools, access to around-the-clock incident response, and broad coverage to help organizations identify, manage, and mitigate digital risk. 

We call this new model of integrated protection Active Insurance, which is designed to help small and midsize businesses thrive in the digital economy. This new approach provides meaningfully better protection for our customers, and our results speak for themselves. Data from our 2022 Cyber Claims Report shows that Coalition policyholders experienced 50% fewer claims than the national average.

Coalition Active Insurance Protection Diagram

Active Insurance goes beyond coverage to provide holistic protection from cyber incidents. In a recent eye-opening example, two organizations that both happened to be Coalition policyholders were entangled in a cyber incident with one another. A manufacturing company received an invoice from their staffing firm and paid promptly, unaware that a threat actor had compromised the firm and rerouted the $207k payment to their account. Coalition's Claims and Incident Response teams clawed back the funds and removed the threat actor from the staffing firm's network, preserving the business relationship between the two vendors. Coalition's efforts enabled each organization to recover quickly while minimizing the overall loss — a result that wouldn't have been possible without Active Insurance.

What this means for our broker partners

The past few months have been a turbulent time for public markets as well as the insurance industry. Cyber insurance has experienced a hardening market for the first time, following years of rapid expansion with relatively low losses with carriers pulling back on capacity, raising rates, and limiting coverage. This has made it more challenging than ever for brokers to help clients access the essential cyber coverage they need to protect their organizations. 

Coalition's technology-driven approach is powering an innovative and more successful model of risk management. This new capacity is a reflection of the success of Active Insurance and enables Coalition to broaden our offering to brokers as a trusted, long-term partner. We're proud to partner with Allianz as well as Ascot and Vantage to accelerate the growth of our cyber programs. 

With these new partners supporting our growth, you can expect the same experience with Coalition: a commitment to continuously improving our broker experience and providing the best protection to our policyholders as we continue our mission to protect the unprotected. 

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