Cyber insurtech Cowbell partnered with Mylo, a digital selling tool created by Lockton, the world’s largest private insurance broker, to expand its reach with small business clientele.
Through the partnership, disclosed Thursday, Mylo would be able to offer Cowbell Prime, a standalone cyber insurance product that can be customized and priced quickly using artificial intelligence. More Cowbell offerings available through the partnership will include a tool that calculates a policy’s risk deviation from the industry average.
“Mylo and Cowbell Cyber are a great fit because we both focus on using technology to give businesses the protection they need to anticipate and recover from serious risks,” said Mylo chief operating officer Belen Tokarski.
Pleasanton, California-based Cowbell focuses on small to medium-sized businesses. Last month it grew its coverage industries to include manufacturing and construction. In September it launched Prime 250, which provides coverage for a broad range of cyberattack scenarios.
The small business market is fertile ground for the insurtech. Accenture found in 2019 that 43% of cyber attacks target small businesses, which often don’t have the cyber security in place to withstand them. These attacks cost companies $200,000 on average, which can be crippling for smaller businesses.
“Partnering with Mylo will allow us to better distribute cyber insurance to the currently underserved markets, ultimately helping customers with their cyber resilience,” said Dan Law, head of national accounts at Cowbell Cyber.
Mylo, launched by Kansas City, Missouri-based Lockton, offers a range of business insurance products including commercial auto, medical malpractice and general liability.
Insurtechs such as Cowbell are quickly making inroads in markets long dominated by traditional carriers, particularly at the retail level, where they can leverage their speedy policy quotes, often powered by artificial intelligence, and low overhead to offer relatively cheap policies within a few minutes.
In October, AXIS Insurance partnered with insurtech Slice to offer a range of products including cyber insurance to home-based U.S. businesses. Hanover Insurance rolled out a new online policy quoting tool for small businesses the previous month.
Fintech investors have showed robust interest in the sector, and insurtech fundraising activity hit a record of $2.5 billion in the third quarter, according to Willis Towers Watson. Heritage Insurance CEO Bruce Lucas will step down at the end of the month with hints he will start an insurtech, which he believes to be the future of the industry.
--Additional reporting by Beth Newhart, Allie Ciaramella and Tom Auchterlonie