Razvan Rusu: Leader Team is now an insurtech and underwriting agency

Advancements in technology and digitalization are increasingly important in our lives, but the widespread use of technology products also comes with risks. That is why IT and cyber risk insurance have already emerged on the market, and Leader Team Broker, an insurance broker specializing in these types of coverage, is one company that provides such services. Business Review spoke with Razvan Rusu, founder of Leader Team Broker, to learn more.

By Aurel Constantin

The presence of technology is growing in our lives as well as in the business world, and the associated risks are growing just as rapidly. How big are these risks and which of them are the most common?

Razvan Rusu: We live in times when almost every business has an online/digital component. The current discussion about artificial intelligence demonstrates how far technology innovation can go on one hand, but also highlights how unprepared we are for such developments. We don’t know what the future is going to look like from this perspective, but we can start preparing for it now. This is what we had in mind at Leader Team Broker when we created and developed insurance products to compensate customers in cyber risk situations—a first for the Romanian market.

New challenges arise daily around the security of online activities and products. Statistics confirm that financial losses generated by increasingly sophisticated cyber attacks or human errors reach billions of dollars annually and continue to grow. The IT component helps us connect with the rest of the world, find solutions faster, be more efficient, save time and money. However, these benefits also come with significant risks that we must address.

Through our IT insurance, which includes IT professional indemnity insurance and Cyber Risk insurance for cyber attacks, we offer our customers the most suitable solutions for a variety of online risks. These risks range from phishing attacks and the theft of personal data to human errors, omissions or mistakes that can harm a company’s operations. Simultaneously, the insurance can also be used to protect IT infrastructure, electronic equipment, and employees, as well as in cases of theft or loss of documents.

How did your company decide to offer insurance products in the IT and Cyber niche?

About five years ago, I saw the need to accelerate changes within the company, bringing greater clarity to our operational processes, focusing more on corporate and SME clients, and introducing innovations to stay ahead of international brokers. I recognised the importance of corporate governance and embraced new technologies, making us the first brokerage company to implement RPA in our internal processes and chatbots for health insurance sales.

In our quest to diversify and grow, I identified a remarkable opportunity on the IT and Cyber insurance market. Despite Romania’s insurance market being dominated by motor insurance, I set my sights on providing specialised IT and Cyber coverage. It was not an easy journey, and even during the challenging times of the pandemic in 2020, I remained dedicated to my mission. Our persistence paid off as we saw exceptional growth in sales during 2021 and 2022.

I took a proactive approach to expanding our reach, establishing connections in various territories across the globe and building strong networks to generate leads in the PI TECH and CYBER domains. As a result, we now have clients in 23 EU countries and manage nearly 1,000 clients with just a team of three, thanks to the technologies we have implemented.

Today, I am incredibly proud to say that Leader Team has evolved into an insurtech and Underwriting agency, paving the way to a bright future. We are the only company in Europe with underwriting rights from a prestigious Lloyd’s syndicate in all EU territories, a significant achievement that sets us apart on the market.

What are the most requested IT insurance products?

Leader Team offers comprehensive IT insurance packages that encompass Professional Indemnity/Errors and Omissions Liability, Public/General Liability, Cyber Risk/Cyber Crime, and Worker Compensation/Employer Liability. Our insurance policies provide both national and international coverage, catering to all types of businesses, including freelancers, SMEs, and large corporations in various industries.

As a result, Leader Team’s client base includes freelancers and SMEs engaged in local and international projects, all of whom require professional IT liability insurance. Large companies also opt for insurance solutions from our portfolio, primarily to safeguard themselves in light of stringent contracts with both national and international clients. Additionally, they seek coverage against the risks of cyber attacks, data breaches, and the theft of personal information, which can lead to legal actions and GDPR fines.

What is the volume of IT insurance you have provided?

Our efforts in the field haven’t gone unnoticed, as major IT companies and recruitment firms throughout Europe regularly refer clients to us. In 2022 we achieved a remarkable 200% growth in sales compared to 2021, a testament to our dedication and focus on innovation. Also, the total volume of IT insurance concluded in 2022 was around EUR 1 million, and we anticipate a 50% growth in the current year, to reach EUR 1.5 million.

Which sectors generate the most IT insurance claims?

There is a need for IT solutions and, implicitly, protection in case of a cyber attack or a software execution error in almost all fields. This is where professional IT liability insurance comes in to protect both the recipients of IT services and those who offer these services to clients. We receive insurance applications from various business sectors, but most come from IT (software industry, hardware, data storage, internet services, etc.), HR, the aeronautical industry or financial and consulting institutions.

It is also interesting to note the fact that small businesses across sectors, whether we are talking about self-employed individuals or SMEs, have shown keen interest in this type of insurance, given that a cyber attack or an error in the case of these customers can generate losses that can cause bankruptcy. That’s why we really encourage freelancers who provide IT services or even small entrepreneurs who only have an online store to consider taking out such an insurance, which can literally save them from bankruptcy.

Are certain business sectors more vulnerable to cyber attacks than others?

Every field that has an IT component is equally vulnerable to cyber attacks. Of course, we can talk about companies operating in IT as being extremely vulnerable, because blocking their activity can lead to chain reactions in other industries as well. But think about what a cyberattack that involves the theft of personal data could also mean for a medical clinic chain, for example, or for a banking institution. That is why we say that the risk is equally high for any business with an online or digital component, especially in the case of small ones, as they cannot afford cyber protection solutions costing hundreds of thousands of euros.

How big are risks associated with the human factor? Can they be quantified and insured?

We used to say that to make mistakes is human, but when a mistake generates losses of millions of dollars and sends the company into bankruptcy, it is clear that a safety net must be in place. Omissions, negligence, and human error represent a significant part of risk and loss in the IT field, which is why we have developed specific insurance that covers a variety of contingencies. An IT insurance from Leader Team Broker is a measure of protection in case of an error, omission or negligence, which endangers both the activity of the client as well as that of the service provider. Those who choose our insurance get advice on choosing the best solution and personalised costs according to their needs. We also provide assistance when the claim is made, as well as quick settlements, according to the contract.

What is the share of IT insurance in the Leader Team Broker portfolio?

This year, IT insurance accounts for around 15% of our activity, and we want it to reach 25% in 2024. Given the fact that the IT market is constantly growing and more and more companies in various fields have an IT component, we expect the IT liability insurance market to grow proportionally in the future, at least at the same pace as it has over the past two years.

Leader Team Broker is also among the top 10 brokers of best-selling professional liability products according to the Financial Supervisory Authority’s “Report on the Evolution of the Insurance Market in Q1 2023,” a field in which we want to be more active in the future. Therefore, in 2024, we will expand our range of professional liability insurance for new professions that have emerged in recent years and those that will continue to emerge: ESG auditors, engineers and designers in the aerospace industry, consultants in marine biodiversity, HR, digital marketing, life, and science.

Looking ahead, our vision is clear: to continue leading the way as a pioneering insurtech company. I aspire to bring forth more innovative products and expand our presence across the entire EU. This journey has required significant financial efforts, but I am confident that the path I have chosen will lead us to even greater heights.

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