How CyberCube Helps Assess Risk for Cyber ​​Insurance

There’s no doubt that cybersecurity – and risk management – ​​is a priority for most business leaders today.

Consider that nearly 75% of organizations experience at least one cyberattack and the average cost of a data breach is $4.35 million.

And, experts say, that makes cyber insurance all the more imperative.

“Cyber ​​risk is a business risk, so cyber insurance is a must for organizations,” write Heidi Shey and Alla Valente of Forrester.

Given all of this, cyber risk management is currently one of the biggest growth opportunities for the insurance industry, said Pascal Millaire, CEO of cyber risk analytics platform CyberCube.

And, he said, “a key to unlocking this potential is the development of robust analytical tools to aid in risk decision-making.”

To bolster its capabilities in this space, CyberCube today announced an additional $50 million in growth capital, bringing its total raised to over $100 million.

Heightened Risk, Opportunity in Cyber ​​Insurance Market

The cyber insurance market size is expected to grow from $12.8 billion in 2022 to $63.6 billion by 2029, registering a compound annual growth rate (CAGR) of 25.7%. According to Fortune Business Insights, the market grew more than 22% in 2020 compared to 2021.

Along with this growth, premiums are only rising, and significantly so: The Association of Insurance Commissioners reports that cyber insurance premiums collected by the largest U.S. insurance companies in 2021 increased by 92% d one year to the next.

“Cyber ​​risk presents the greatest opportunity P&C insurers have had in over a century,” Millaire said. “In a world with billions of Internet of Things (IoT) devices, the explosion of data and the automation of industries, cyber risk will reshape risk, the economy and society, and therefore the whole of the P&C insurance industry.”

At the same time, says CyberCube co-founder and chief product officer Ashwin Kashyap, “policyholders can improve their risk posture quite quickly and respond to unfolding events by taking actions that can significantly reduce the overall risk that they present for an insurer”.

Cyber ​​hygiene practices that insurers are likely to require, Kashyap said, include enterprise-wide implementation of multi-factor authentication (MFA) and disabling remote desktop services or put in place controls requiring multiple levels of approval.

Quantify cyber risk

CyberCube competes in its market with AIR Worldwide, SecondSight, At-Bay, SecurityScorecard, BitSight, and RedSeal, among others.

The company’s cloud-based platform helps insurance companies quantify cyber risk to facilitate insurance underwriting, assess individual business risks during the underwriting process, and manage cyber risk aggregation. risks, Millaire said.

“We quantify cyber risk to create actionable insights for insurance companies,” he said. “We turn cyber risk into dollars and cents, so organizations can make value-based decisions about how to manage, mitigate or transfer risk.”

The technology’s business intelligence layer provides insights into millions of businesses worldwide and includes modeling across thousands of technology failure points, he said. This allows insurers and brokers to understand their portfolio’s exposure to cyber threats and enable their customers to better protect themselves.

The company’s SaaS products include:

• Brokerage Manager, for brokers to better advise their clients on risk transfer.
• Portfolio Manager, a scenario-based catastrophe model that provides portfolio-level insights for senior management decision-making.
• Account Manager, giving insurance underwriters a single view of every risk they assess with actionable insights.
• CyberConnect, which integrates analytics through application programming interfaces (APIs), integrating into existing workflows.

Holistic cyber insurance management

Today’s funding round brings the company’s total raised to over $100 million. He will support the development of CyberCube’s cyber risk quantification products while accelerating commercialization expansion in the global insurance, reinsurance and brokerage industry.

Funding came from investment funds managed by Morgan Stanley Tactical Value (Morgan Stanley), with continued participation from existing investors Forgepoint Capital, Hudson Structured Capital Management (Bermuda) Ltd., MTech Capital and key investors Stone Point Capital. Scott G. Stephenson, former chairman, president and CEO of Verisk, also participated in the financing and will join CyberCube’s board of directors as a director.

Throughout 2022, CyberCube also announced several strategic partnerships, including with Relm Insurance, Elpha Secure, Kapnick, Relay and EXL, Millaire said.

“The transfer of cyber risk to insurance markets is rapidly becoming pervasive and vital to overall risk management across industries,” said Don Dixon, co-founder and CEO of Forgepoint and chairman of the board of directors of Forgepoint. CyberCube.

Michael Millette, co-founder and managing partner at HSCM Bermuda and board member of CyberCube, agreed: “Quantifying cyber risk through robust modeling will enable industry participants to predict risk levels and provide useful pricing information.