Technologies

Helping Cyber Insurers in Crafting Policies


Abstract/Technology Overview

Our company help cyber insurers to write policies at the right price using data-driven cyber risk insights derived directly from policyholder devices.

Cybercrime is rising rapidly and cyber risks are constantly mutating. Unsurprisingly, corporates are seeking increased insurance cover, and the huge cyber insurance market is growing rapidly. But cyber insurers lack the fundamental data they need to price their risk exposure properly. Not only is there a dearth of historical data, but cyber insurers have to contend with the statistical nightmare of black swans, fat tails and systemic risk. Current solutions collect cyber risk profile on corporates from external sources and benchmark against peer businesses. But these do not provide real insight into the actual and evolving risk profile of individual policyholders or full visibility to their concentration risks across an insurer’s portfolio.

The company develop and commercialise innovative technologies for cyber insurance and cybersecurity. Our unique solutions help corporate and cyber insurers manage cyber risk using real-time risk data derived from every device used by every policyholder. Our cloud-based risk detection and the alerting tool provides corporates with C-suite cyber risk tools. At the same time, we collect, aggregate and score real-time risk data on every device and present aggregated cyber scores to the cyber insurer by the policyholder and by risk category across the entire portfolio. We use AI and analytics to help insurers better price premiums and automate applications/ quotes/ claims procedures to strengthen underwriter operating models and better identify profit pools.

Our technology is targeted at cyber insurers and is white-labelled to form an integral part of their cyber product offering.


Technology Features, Specifications and Advantages

Our technology is a lightweight software agent deployed onto endpoints, servers and mobile devices.  It automatically collects and quantifies current and ongoing cyber risks from every device. It quantifies the value at risk of personal data on each device and supports GDPR and other data regulation compliance. System risk data includes Operating System (OS) update and patch status, anti-virus & backup software current and running, firewall settings, user behavior analytics (e.g. series of failed logins, license management) and Internet of Things (IoT) device production.

Our platform is specifically designed for business users and generates on-demand C-suite reports showing the current and historic risk profile of the organisation with a drill down onto every device.  We use advanced analytics to generate cyber scores for the overall business and individual devices.

Our cloud-based technology platform integrates easily with existing policy, pricing and claims systems used by cyber insurers. The data is used to prepopulate application/renewal forms, saving the business the headache of completing those forms while providing cyber insurance with accurate data for pricing. The initial premium is presented to policyholders together with recommendations for improving their cyber score to reduce the premiums.  The data is continually updated, enabling the insurer to monitor and reward/penalise for good or poor risk management either on renewal or on-demand.  Our insurance platform incorporates AI, analytics and automation across the entire policy lifecycle.


Potential Applications

Our primary focus is on the cyber insurance market. There’s an opportunity to solve the insurers’ problems and transform the cyber insurance industry in a similar way that ‘telematics’ transformed car insurance.

However, the core technology can be used directly by corporates as a C-suite cyber risk management tool.

The company also working on a revolutionary anti-fraud technology initially intended to address the inevitable insurance fraud. Our company believe this technology has significant market potential in its own right. Because of its simplicity and the absence of special hardware requirements, it is particularly suited to the IoT where the extreme cost sensitivity makes a pure software security solution extremely appealing. The earliest adopters are expected to be IoT system vendors who can deploy the solution they can deploy retrospectively on an installed base. The other targets include OS vendors and chip manufacturers. Our plan is to license the technology to these customers.


Customer Benefit

The insurance application is specifically designed to ensure mutual benefits to both the insurer and the policyholder.

The insurer has comprehensive, accurate risk-relevant information to set initial premiums; real-time risk information per policyholder, per device across the portfolio; and full audit history of the corporate with remote access to that history - a significant saving in claims handling. The real-time availability of data enables them to apply usage-based insurance techniques; good risk/bad management can be rewarded /penalised through reduced/increased cyber insurance premiums and any changes in circumstance, for example, a significant addition of devices to the corporate network can be easily identified. Combining workflow automation, analytics and AI drives down expense and loss ratios, improving profitability and reduces earnings volatility

The policyholder has simpler, faster digital application/renewal forms; Transparent, data-driven premiums; the ability to influence premiums through effective risk management; Board Reports on GDPR/Data and cyber risks across the organization; and detailed drill-downs on risks per device. From a corporate perspective, there is an opportunity to shift direct cyber-security costs to a model where cyber-risk assessment and defence tools are provided by insurers in exchange for risk data.

OVERVIEW
Contact Person

Fiona Kinghorn

Organisation

InsurTechnix Limited

Technology Category
  • Infocomm
  • Artificial Intelligence
  • Big Data, Data Analytics, Data Mining & Data Visualisation
  • Cloud Computing
  • Financial Technology
  • Security & Privacy
Technology Status
  • Available for Licensing
Technology Readiness Level
  • TRL 7
Keywords

InsurTech, cyber security, AI, Analytics, IOT, Usage based insurance, Cloud computing, Machine Learning