Addressing the Skills Gap in Cyber Risk: How Insurers & Brokers Can Bridge the Divide

This article was originally published on Live Insurance News.

Cyber technology may be soaring, but with innovation comes vulnerability. With threats evolving in tandem with new technology, insurers and brokers increasingly need specialized knowledge in assessing and managing cyber risk.

Acquiring this knowledge may sound easier in theory than reality. One of, if not the biggest, hurdle to overcome is bridging the significant skills gap in cybersecurity expertise. Across the insurance industry, this gap has led to challenges in effectively underwriting and communicating cyber risks for insurers.

For brokers, this gap is both a challenge and an opportunity. By enhancing their cyber literacy, brokers can become expert advisors for clients navigating complex cyber exposures.

Here’s how insurers and brokers can work together to bridge this skills gap, strengthen client trust, and build a more resilient cyber insurance market.

Scope of the Cyber Skills Gap

The surge in cyber threats such as ransomware, unauthorized access,, and phishing attacks, has outpaced the growth of cyber expertise within many insurance firms. Cybersecurity is a specialized field that demands a deep understanding of technology, risk mitigation strategies, and the regulatory landscape. While cyber policies have traditionally covered financial losses from data breaches or system failures, today’s risks require an understanding of nuanced technical threats and their respective potential impacts.

As a result, many brokers and insurers struggle to communicate these risks clearly to clients, especially smaller or mid-sized businesses that may not have internal cyber expertise. Bridging this gap involves targeted education, collaboration, and new tools to strengthen cyber risk assessment and communication.

Steps Insurance Professionals Can Take to Bridge the Divide

Enhance Cyber Expertise Within the Insurance Team

Insurers can strengthen their internal teams by providing targeted cyber risk training to underwriters, claims professionals, and customer support staff. Specialized training that includes real-world case studies, threat analysis, and policy interpretation ensures internal teams are well-prepared to evaluate complex cyber risks and respond effectively to incidents. This proactive approach improves policy accuracy and enhances service quality by equipping employees with the knowledge to address the unique needs of cyber insurance clients.

Develop Cyber Risk Assessment Tools

Advanced assessment tools, such as risk scorecards or cyber exposure dashboards, allow brokers to better evaluate a client’s specific cyber risk profile. These tools can assist agents in understanding potential vulnerabilities, such as network security gaps or insufficient data protection protocols, and recommend coverage levels or policy add-ons.

Offer Cybersecurity Resources & Support

Insurers can add value to policies by providing clients with resources like cybersecurity awareness training, incident response planning guides, and access to cyber monitoring tools. Some carriers either partner with cybersecurity firms or have their own proprietary security capabilities, enabling policyholders to access threat detection services or consulting on preventative measures, which brokers can highlight as value-added benefits.

Enhancing Broker-Client Relationships Through Education

Cyber insurance brokers can enhance their expertise by engaging with cybersecurity-focused resources like podcasts, webinars, security conferences, and professional networking opportunities. These avenues provide valuable insights into emerging threats, trends, and best practices directly from industry experts. By staying informed about the technical and operational aspects of cybersecurity, brokers can better understand the risks their clients face and align insurance solutions accordingly. This well-rounded knowledge enables them to ask the right questions, identify potential gaps in coverage, and offer tailored advice, ultimately positioning them as trusted advisors who bridge the gap between cybersecurity and insurance.

Simplify Communication on Complex Cyber Concepts

One of the lead challenges brokers face is explaining complex cyber terms and coverages in a way that is accessible to clients. Insurers can support this by providing simplified materials, glossaries, and FAQs on common cyber terms. When brokers clearly explain coverages like business interruption or social engineering fraud, clients are more likely to feel confident in their coverage choices.

Encourage Cyber Resilience Planning

Brokers can guide clients in developing cyber resilience strategies that go beyond insurance. Helping clients implement basic security measures—like multifactor authentication, regular system updates, and employee training on phishing—demonstrates the broker’s commitment to reducing risks and builds trust. Clients who feel supported in prevention and protection are more likely to value the broker’s expertise.

Collaboration for a Stronger Cyber Insurance Market

Just like cyber technology, the cyber insurance market is expanding at a rapid pace. To create comprehensive, easily-digestible policies that meet clients where they are, the crucial ingredient is collaboration between insurers and brokers.

Insurers can help brokers transform a liability into an opportunity through knowledgeable information and comprehensive training on emerging threats, regulatory developments, and risk assessment tools. But this list is far from exhaustive. There are so many avenues insurers can take to ensure brokers have a fortified understanding of cyber risk.

Brokers who are empowered to navigate the nuances of cyber risk are better equipped to serve their clients as well as strengthen their competitive position in a growing market. Through collaboration, brokers and insurers are able to narrow, if not close, the cyber skills gap and meet the demand for sophisticated, effective cyber risk management that today’s digital ecosystem requires.