Alexis Cierra Vaughan has been working in the insurance industry for 14 years. As the AVP of Marketing, she oversees agency engagement for the 23,000 agents and brokers who are appointed with Cowbell, both nationally and internationally. Vaughan also handles sales support for the insurtech’s internal sales division, particularly as they work directly with their brokerage community.
Additionally, Cowbell, which was launched in 2019, is a rapidly scaling leader in the cyber insurance space. It also recently won the Ambitious Insurer Award at Insurtech Insights USA 2023 in New York, sponsored by EIS.
Insurtech Insights caught up with Vaughan to find out how the cyber insurance market is developing, how AI is driving change, and why keeping data safe from cybercriminals is her happy place.
Can you tell us about your role as the AVP of Agency Marketing for Cowbell Cyber?
Sure! As the AVP of Agency Marketing for Cowbell Cyber, one of the most critical aspects of my role is making the complex topic of cyber accessible and understandable for various audiences, especially for agents and brokers who may be less familiar with the intricacies of cyber insurance. We achieve this through various strategies such as events, strategic partnerships, creative marketing, and cyber education, all of which play a significant role in my work at Cowbell.
What do you like most about the cyber insurance space?
Cyber insurance is like life insurance for your business in the digital age. If your company becomes a target of a cyber attack and you don’t have adequate coverage, the financial repercussions can be devastating. You’ll have to bear the full cost of recovery and restitution from your company’s revenue, which could potentially lead to bankruptcy.
With cyber insurance, you gain a safety net that helps mitigate the financial impact of cyber incidents. It can cover the costs of investigating the cyber incidents notifying affected parties, restoring data, and even legal expenses resulting from lawsuits. Having cyber insurance ensures that your business can recover and continue operations without facing catastrophic financial consequences.
As cyber threats continue to evolve and become more sophisticated, cyber insurance is becoming a necessity rather than an option for businesses of all sizes. It’s a proactive measure that protects your company’s livelihood and reputation in the digital world, much like life insurance protects the well-being of your loved ones.
Cyber insurance can be challenging to grasp. How do you stay updated on it, and what’s your background in understanding it?
I have been in the insurance industry for 14 years now, and my background is quite diverse, which has played a significant role in my understanding of cyber insurance. Over the years, I have been involved in various roles within the insurance distribution channel. I have been an independent agent with my own agency, an MGA (Managing General Agent) in the digital distribution channel, and even owned my own MGA where I taught the insurance business to others. This unique experience has allowed me to empathise with the different perspectives and needs of agents, brokers, and business owners.
My passion for continuous education led me to gain extensive knowledge of various insurance products, including cyber insurance. I believe in understanding the products thoroughly, not just to close deals but to ensure that clients are adequately covered. Cyber insurance, in particular, demands a customised and tailored approach for each client, as their needs and risks can vary significantly based on industry verticals and revenue levels.
Cowbell Cyber has gained recognition for its “Cowbell Factors”. What are the unique signals used to identify potential threats and risks?
Cowbell Factors™, are a set of proprietary risk ratings that continuously benchmark organisations against a risk pool of 35 million entities. Our company’s name doesn’t come from the Saturday Night Live skit as some might think, but rather, just like Cowbells are used to send signals of danger, we use the Cowbell Factors to do the same for the 35 million people in our risk pool. One of our core objectives is to conduct continuous risk assessments using these Cowbell factors, even before a client becomes a policyholder. This proactive approach helps us monitor and evaluate risks effectively.
Our continuous risk assessments also benefit our policyholders, as they can activate the Cowbell Connectors (Cowbell Connectors facilitate the modeling of over 3,000 risk signals collected from Microsoft 365, AWS, Google Workspace, Google Cloud, and other commonly used technology and cybersecurity solutions) and receive alerts about potential risks and vulnerabilities in their cybersecurity posture, along with working with our Risk Engineering team.
Furthermore, we form strategic partnerships with cybersecurity experts, bridging the gap between insurance professionals and cybersecurity specialists. Our culture at Cowbell Cyber fosters innovation and empowers every member of our team to contribute ideas and initiatives to enhance the company’s capabilities and impact in the marketplace. We truly believe in making an impact at every level, regardless of the position within the organisation.
How does Cowbell differentiate itself from other companies offering cyber insurance solutions?
We have experts from both cybersecurity and insurance backgrounds, bridging the gap between these two domains. This unique combination of skills enhances our product and solution, giving us an edge over competitors who may lack this expertise.
What factors have contributed to Cowbell’s success in recent years, leading to the Ambitious Insurer award at ITI USA 2023?
Our success can be attributed to several key factors. Firstly, we recognized early on the importance of educating both our brokers and policyholders about cyber insurance. We understand that cyber insurance is a relatively new concept for many, and we wanted to ensure that those selling our solution and those using it were well-informed. This education process includes our Risk Engineering team sitting down with every policyholder to conduct risk assessments and provide them with personalised cybersecurity recommendations.
Cowbell Academy has played a significant role in our success. It’s a groundbreaking e-learning centre that provides agents and brokers with on-demand courses and live webinars. Through the Academy, we offer education on our products, differentiation strategies, and general cyber knowledge. This focus on education has allowed us to tap into the underserved small to medium-sized business market, where awareness of cyber risks is crucial.
Our commitment to adding value for our clients has also played a crucial role. For example, we negotiate and bring in cybersecurity vendors for our policyholders through the Cowbell RX program. This streamlines the process and ensures that our clients have access to top-notch cybersecurity solutions.
Overall, our relentless dedication to education, innovation, and providing real value to our clients has contributed to Cowbell’s success and recognition in the marketplace.
Apart from the lack of education, what other challenges are cyber insurers facing in 2023?
One of the significant challenges cyber insurers are grappling with is the evolving landscape of cyber incidents. Ransomware remains a prevalent threat, and while there may be temporary declines, it can surge again rapidly. Cyber insurance is unique in that it faces constant changes and shifts, making it essential for insurers to adapt quickly to emerging risks.
Another challenge lies in the need for comprehensive data. The cyber insurance industry needs more historical data than other lines of insurance typically have, which can make it more challenging to assess and underwrite risks accurately. However, the InsureTech space has been filling this gap by providing more data-driven insights to help insurers make informed decisions.
The reinsurance market also poses challenges as it fluctuates between hardening and softening conditions. While some areas of the cyber insurance market are experiencing a softening market, it’s essential to remember that this sector is relatively young and continuously changing. Generative AI is an emerging trend, but insurers need to be cautious about using any new technologies responsibly and securely to avoid potential vulnerabilities.
Despite these challenges, insurers are finding ways to tackle them proactively. Many companies are adopting a risk management approach, providing additional value to their clients by helping them manage and mitigate cyber risks effectively. Additionally, insurers are forming partnerships with cyber InsureTechs to leverage their expertise and accelerate innovation in the field.
Overall, cyber insurers need to remain agile, constantly educate themselves on the evolving cyber landscape, and explore new technologies and partnerships to stay ahead in this dynamic and fast-paced industry.
There’s been an increase in ransomware attacks and other cyber incidents. Can you tell us more about the types of cyber threats that insurers are currently dealing with?
Yes. While ransomware is often in the spotlight, there are other significant cyber threats as well. Apart from phishing, which involves email-related attacks, there’s also something called “smishing.” Smishing is a form of phishing conducted through text messages. For instance, bad actors might pretend to be someone like a CEO and send text messages with malicious links or requests for personal information.
That’s concerning. With the advancement of generative AI, cyber threats are becoming more sophisticated. Could you tell us more about how AI-generated voices and videos are posing new challenges for insurers?
Absolutely. Generative AI, including AI-generated voices and videos, has become a concern in the cybersecurity landscape. AI can now emulate people’s voices, and we’ve seen instances of automated calls or “vishing” where AI-powered systems make fraudulent calls to individuals. Furthermore, there’s a risk of AI constructing deceptive videos, which can be used for social engineering attacks.
Given these emerging challenges, how can insurers use AI and generative AI to their advantage in tackling cyber threats?
Despite the challenges, AI can also be a powerful tool for insurers. By utilising AI and generative AI, we can assist underwriters in identifying risks, collecting data, and streamlining processes to make their job more manageable. For instance, we’ve introduced “Moo GPT”, Cowbell’s AI-based underwriting assistant, which automatically underwrites similar risks based on a collection of rules that evolve dynamically with cyber threats. Moo also equips underwriters with granular, organised insights that streamline risk selection and pricing for more complex risks to help brokers, policyholders, and underwriters in risk assessment, decision-making, and incident response planning and so much more. The key is to find ways to leverage AI technology to work for us, instead of against us by improving efficiency and accuracy in our operations.
It sounds like insurers need to adapt to the evolving cyber threats and use AI to enhance their practices. What other trends are you seeing in the industry to tackle cyber threats?
You’re absolutely right. Apart from AI integration, we’re seeing insurers taking a risk management approach to tackle cyber threats. Many are looking for ways to provide not only insurance coverage but also risk mitigation and management services to their clients. Additionally, there’s a trend of traditional insurers partnering with cyber InsureTechs to leverage each other’s strengths and create more comprehensive solutions.
With cyber threats constantly evolving, how do you ensure that insurers stay up-to-date and equipped to address new challenges?
Staying ahead of cyber threats requires continuous learning and adaptation. As insurers, we need to be mindful of the data we share and consider how to use AI responsibly. Embracing ongoing education and training for our teams is essential to keep them well-informed about the latest threats and cybersecurity best practices. By being proactive and innovative, insurers can maintain a competitive edge and better protect their clients in this ever-changing cybersecurity landscape.
Can you tell us more about these exciting developments?
Yes, we are thrilled about Cowbell’s launch into the UK market. It’s a significant step for us, and we’re eager to make an impact there. We’ve observed that there’s a considerable gap in cyber insurance coverage for small to medium-sized businesses in the UK, with nine out of ten being either uninsured or underinsured. So we see great potential to provide valuable solutions to this market.
We’re also gearing up for new product launches and expanding into technology errors and omissions (E&O) insurance. We always aim to improve our products and solutions, aligning them with the changing technological landscape and the evolving needs of our insureds.
Additionally, we’re introducing the Cowbell Academy, a centre for policyholders that will offer valuable insights and education. This initiative reflects our commitment to continuous education and support for our clients. We have ambitious plans for Cowbell Academy in the UK as well, and we’re eager to bring all these exciting developments to fruition.
What inspires you personally to be part of this dynamic industry?
What excites me the most about the InsureTech space is the freedom it provides for creativity and innovation. Unlike traditional insurance lines, where ideas may take years to implement due to bureaucratic processes, InsureTech allows us to quickly execute and bring ideas to life. This dynamic environment empowers me to make an impact, be creative, and contribute to meaningful changes in the industry.
The sense of accomplishment and reward from seeing my ideas and initiatives take shape and positively impact the insurance industry keeps me motivated. Additionally, being part of an industry that fosters diversity and inclusion is incredibly inspiring. At Cowbell, I’m proud to be part of a team where 46% of employees are women, especially in the highly technical and traditionally male-dominated field of cybersecurity. It’s essential to create a culture where everyone’s voice is heard and valued.
Interview by Joanna England
Joanna England is an award-winning journalist and the Editor-in-Chief for Insurtech Insights. She has worked for 25 years in both the consumer and business space, and also spent 15 years in the Middle East, on national newspapers as well as leading events and lifestyle publications. Prior to Insurtech Insights, Joanna was the Editor-in-Chief for Fintech Magazine and Insurtech Digital. She was also listed by MPVR as one of the Top 30 journalist in Fintech and Insurtech in 2023.
