How CyberDice helps assess danger for cyber insurance coverage

Undoubtedly, cybersecurity — and the administration of danger — is prime of thoughts for many enterprise leaders immediately. 

Consider that just about 75% of organizations expertise not less than one cyberattack — and the common price of a information breach is $4.35 million. 

And, consultants say, this makes cyber insurance coverage all of the extra crucial. 

“Cyber risk is a business risk, so cyber insurance is a must-have for organizations,” write Forrester’s Heidi Shey and Alla Valente. 

Given all this, cyber danger administration is without doubt one of the best development alternatives for the insurance coverage sector proper now, stated Pascal Millaire, CEO of cyber danger analytics platform CyberDice. 

And, he stated, “a key to unlocking this potential is the development of robust analytics tools to assist risk decision-making.” 

To assist additional its capabilities on this space, CyberDice immediately introduced $50 million in further development capital, bringing its whole raised to greater than $100 million. 

Increased danger, alternative in cyber insurance coverage market

The cyber insurance coverage market measurement is projected to develop from $12.8 billion in 2022 to $63.6 billion by 2029, registering a compound annual development price (CAGR) of 25.7%. According to Fortune Business Insights, the market exhibited greater than 22% development in 2020 in comparison with 2021. 

Along with this development, premiums are solely getting greater, and considerably so: The Association of Insurance Commissioners experiences that cyber insurance coverage premiums collected by the most important U.S. insurance coverage carriers in 2021 elevated by 92% year-over-year. 

“Cyber risk presents the greatest opportunity property and casualty (P&C) insurers have had in over a century,” stated Millaire. “In a world with billions of internet of things (IoT) devices, the explosion of data and automation of industries, cyber risk will reshape risk, the economy and society, and therefore the entire P&C insurance industry.”

At the identical time, says CyberDice cofounder and chief product officer Ashwin Kashyap, “policyholders can improve their risk posture rather quickly and react to unfolding events by taking actions that can dramatically reduce the overall risk they present to an insurer.” 

Cyberhygiene practices that insurers are more likely to require, stated Kashyap, embody firm-wide implementation of multifactor authentication (MFA) and disabling distant desktop providers or having controls that require a number of ranges of approval. 

Quantifying cyber danger

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

The firm’s cloud-based platform helps insurance coverage organizations quantify cyber danger to facilitate inserting insurance coverage, consider particular person industrial dangers throughout the underwriting course of and handle cyber danger aggregation, stated Millaire.

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

The expertise’s enterprise intelligence layer gives insights on thousands and thousands of firms globally and contains modeling on hundreds of factors of expertise failure, he stated. This permits insurers and brokers to know portfolio publicity to cyberthreats and allow their shoppers to raised shield themselves.

The firm’s SaaS merchandise embody: 

• Broking supervisor, for brokers to raised advise their shoppers on danger switch.
• Portfolio supervisor, a scenario-based disaster mannequin that empowers portfolio-level insights for senior management decision-making.
• Account supervisor, giving insurance coverage underwriters a novel view of every danger they assess with actionable insights.
• CyberJoin, which integrates analytics by means of utility programming interfaces (APIs), integrating into present workflows. 

Holistic cyber insurance coverage administration

Today’s funding spherical brings the corporate’s whole raised to greater than $100 million. It will help improvement of CyberDice’s cyber danger quantification merchandise whereas accelerating go-to-market growth within the international insurance coverage, reinsurance and broking trade.

The funding got here from funding funds managed by Morgan Stanley Tactical Value (Morgan Stanley), with continued participation from present buyers Forgepoint Capital, Hudson Structured Capital Management (Bermuda) Ltd., MTech Capital, and key buyers from Stone Point Capital. Scott G. Stephenson, former chairman, president and CEO of Verisk, additionally participated within the financing and can be part of the CyberDice board as a director. 

Throughout 2022, CyberDice has additionally introduced a number of strategic partnerships, together with with Relm Insurance, Elpha Secure, Kapnick, Relay and EXL, stated Millaire.

“The transfer of cyber risk to the insurance markets is fast becoming ubiquitous and vital for holistic risk management across sectors,” stated Don Dixon, cofounder and managing director at Forgepoint and chairman of the CyberDice board. 

Michael Millette, cofounder and managing associate at HSCM Bermuda and CyberDice board member, agreed: “The quantification of cyber risk through robust modeling will allow industry participants to predict risk levels and provide useful pricing information.”