Why We Made Security Control Questions Optional for Australian SMEs

Many clients never get a proper cyber insurance quote because the application process stops them cold. Clients find that many application forms are too long or overly technical. Additionally, it makes it difficult for brokers to organise a quote when they don't have the full information provided to them. This has led to many small-to-midsize enterprises (SMEs) to put cyber in the “too hard” pile.

Cyber insurers have relied on the annual, point-in-time questionnaires to capture a risk profile. But while cyber threats and technology have rapidly evolved, the traditional cyber insurance application process has remained mostly the same.

The burden of a complex application does more than just slow brokers down. It actively deters clients from purchasing cyber entirely.

With the launch of our new shortened application, eligible Australian SMEs no longer have to answer questions about cybersecurity controls to get a quote from Coalition, which cuts down friction and saves brokers valuable time. 

The Limits of Long Form Proposals

Many SMEs don’t have a strong grasp of their cybersecurity posture or an understanding of technical controls. A business owner may know their company uses multi-factor authentication (MFA). However, they probably can’t confirm that it’s implemented across every server, access point, and third-party application.

When SMEs turn to their MSPs for guidance, their answers are often full of nuance, making it difficult to answer questionnaires with a binary yes/no. Requiring SMEs to answer these questions when they lack confidence in their answers can introduce a high degree of noise and uncertainty.

Many SMEs don’t have a strong grasp of their cybersecurity posture or an understanding of technical controls.

When a cyber insurer can’t rely on the accuracy of what is provided in a paper application, the actuarial model must account for the gap. So insurers typically factor that uncertainty into the premium in their rating models, which can effectively raise the cost for all policyholders.

From Estimation to Data-Driven Underwriting

Instead of requiring an SME to manually describe its digital perimeter, Coalition evaluates it from the outside in. This data-led approach is powered by Active Insurance. 

Coalition takes the same view as a threat actor searching for vulnerabilities. We map live, external risk signals against historical claims data from Coalition’s 110,000+ global policyholders.

Our data-driven approach correlates far more accurately with actual loss experience than a traditional application. This allows us to not only maintain but also improve underwriting confidence and portfolio sustainability, all while removing the administrative work from your clients’ plates.

Instead of requiring an SME to manually describe its digital perimeter, Coalition evaluates it from the outside in.

Maximise Efficiency with Intelligent Submissions

This short-form application experience is built into our Broker IQ platform, which is designed to remove friction from the quoting process for brokers and clients alike.

• Quote first-time buyers without a lengthy application: Don’t let paperwork prevent clients from getting the coverage they need. You can generate a quote and share coverage options right in front of your clients.

• Questions scaled to business size: For SMEs under $25 million AUD in revenue, we’ve reduced our cyber application to a few simple questions. This lets our data engine do the heavy lifting, ensuring efficiency while maintaining accuracy.

• Maintain total flexibility: For clients that have a strong handle on their technical controls, detailed security questions remain optional. If answered positively, SMEs can benefit from a lower premium.

Broker IQ is the intelligent cyber insurance workspace that helps expedite quoting, simplify selling, and amplify your cyber expertise. 

Pushing the Market Forward

The era of annual, point-in-time cyber questionnaires is close to becoming obsolete. Relying strictly on static snapshots that struggle to correlate with actual loss experience isn't sustainable in the long term. This often leads to well-secured businesses carrying the weight of unverified portfolio risk.

Skeptics might view these changes as a typical "soft market play" designed to win market share by cutting corners. But the reality is that technology has finally caught up to the underwriting process. We have the power to use advanced data to build a more accurate, sustainable, and stable market for brokers and policyholders alike.

With the launch of our shortened application, Coalition is pushing the industry forward into an era of true, data-driven risk management.

Ready to see Broker IQ in action? Contact your local Coalition BD to schedule a walkthrough of the new workspace.

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This blog post is designed to provide general information on the topic presented and is not intended to construe or render legal or other professional services of any kind. If legal or other professional advice is required, the services of a professional should be sought. Neither Coalition nor any of its employees make any warranty of any kind, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, product, or process disclosed. Any action you take upon the information contained herein is strictly at your own risk. Coalition and its affiliates will not be liable for any losses and damages in connection with your use or reliance upon the information. The blog post may include links to other third-party websites. These links are provided as a convenience only. Coalition does not endorse, have control over, nor assumes responsibility or liability for the content, privacy policy, or practices of any such third-party websites.

Insurance cover is issued by Coalition Insurance Solutions Pty Ltd. (“CIS AU”) (ABN 33 657 140 791, AFSL 539846) under a binding authority given by certain insurers. CIS AU may receive compensation from insurers in connection with the sale of insurance cover. Please see licences and disclaimers for more details. This information is of a general nature only and does not take into account any person's particular circumstances. All descriptions of coverage are subject to the terms, conditions, and exclusions of the individual policy.

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