Shaping the future of cyber resilience: a conversation with Phil Hoyt, Principal Underwriting Specialist, Cyber

As cyber threats grow in complexity and frequency, Sovereign is staying at the heart of technology risks, data insights and comprehensive insurance products. We sat down with Phil Hoyt, Principal Underwriting Specialist and Lead Subject Matter Expert for Sovereign’s Cyber program to discuss the challenges ahead and our response to protecting Canadians.

What’s driving the urgency behind evolving Sovereign’s cyber program?

The pace at which computers have become embedded into every aspect of human activity is accelerating and creating risk for our customers. We must respond to these needs with comprehensive products, risk mitigation awareness, support and cost that is affordable and sustainable. The competitive landscape is changing quickly, which requires new and thoughtful insurance solutions.

What’s at the core of Sovereign’s approach?

We take pride in being a purpose-built insurance provider rooted in co-operative values. We’re a partner in building resilience, and we’ve done that by being a leading provider of cyber insurance in the Canadian market. 

Now, we’re looking ahead with a goal to create products and services that meet our clients where they are, improve their understanding of cyber risk, and support them with effective response tools and affordable insurance coverage.

Can you tell us more about Sovereign’s personal cyber product?

All aspects of modern life have become vulnerable to malicious cyber acts. Our smartphones, homes, watches, doorbells, televisions, online banking and social media, to name a few, all create an opportunity for a cyber criminal to inflict personal and financial harm. We’ll offer coverage for key events including cyber fraud, identify theft, crisis management, bullying, hardware destruction, extortion, privacy, and home business extension.

Our personal cyber product provides broad coverage to our insured and their families. Key to our offering is 24/7 human response for our customers with direct one-to-one support from fraud specialists.

What role does data play in the evolution of cyber?

The use of data by insurers to assess, price, and transfer risk is fundamental to our business and has been since the development of insurance. Data remains at the heart of our approach as we enhance our cyber program for customers.

The number of Internet-connected devices will grow from 16.6 billion in 2023 to 32.1 billion by 2030. Each represents a risk and an opportunity to gather data, assess risk, and manage outcomes.

Today, we acquire data in real-time which means we can monitor the risk and warn our customers of unknown or emerging threats. Real-time data analytics enhance fraud detection and predictive modelling, improving the ability to forecast future losses and trends. Gathering and using data allows us to enhance risk management and shape our response around what customers need.

What is one of the biggest challenges in the evolving cyber space?

The transformation happening in cyber right now is being driven by both the risk of our increased reliance on technology and the imperative to manage that risk for sustainable business results. We need to change and adapt faster than we ever have before, to be smarter, faster and introduce new products to better serve our customers.

What should people know about protecting themselves from cyber risk?

Take opportunities to inform yourself about your personal cyber risk and security. If you have a personal understanding of how technology and connectivity create risk for you, then you’ll have a better chance of adopting better digital safety practices. This will benefit you, and your family, workplace and community.