New Analytics Product For Cyber Insurance

Cyber risk analytics specialist CyberCube has launched a new software-as-a-service application designed specifically for insurance brokers called “Broking Manager" to povide more accurate client insight for both generalist and cyber specialist brokers.

The product is designed to help brokers quantify, understand and explain to their clients the sources and financial impact of cyber risk exposure.

This development recognises that insurance advisers need to be able to educate sales prospects and existing clients while demonstrating an understanding of their needs and exposures. 

Brokers are expected to align clients’ goals, budgets and exposure to the appropriate limits and optimal carrier policies and in the case of cyber risk, this means understanding the types of scenarios that may cause financial loss and the costs that would drive losses. 

Broking Manager empowers brokers to instantly produce a cyber financial loss report on millions of companies, while providing rich information to help brokers articulate their clients’ cyber exposure.  It does so by leveraging advanced models that draw on data from a large number of sources including behind the firewall and perimeter scan data, historical incidents and losses, and firmographic data. The product offers a stream-lined approach to generating the financial exposure impact of client-specific security and business practices. Brokers can also leverage the product to educate clients on potential loss classes, recent cyber events, and bench-marking of cyber risks against peers.

With cyber risk, it is important to understand the types of scenarios that may cause financial loss and the costs that would drive losses, explained the San Francisco-based company.  “With Broking Manager we set out to tackle the most fundamental question facing brokers today; what coverages and limits do companies need? We’ve had considerable interest from the broking community internationally, so we felt the time was right to build and launch this product,” said Oren Schetrit, CyberCube’s director of Product.

“Brokers play a vital role in helping clients identify and manage risk. Our goal is to empower them to quantify and explain cyber risk exposure to a broad audience without becoming experts in information security,” added Schetrit. “Broking Manager will promote informed conversations that will ultimately lead to better buying decisions.”

Ashwin Kashyap, co-founder of CyberCube and head of Product and Analytics, said: “Cyber insurance as a line of business is still in its early stages of growth and there is a clear need for a solution to help companies make informed decisions on what they need to buy.... As trusted advisors to companies on their cyber insurance purchase, insurance brokers play a very important role in the ecosystem by connecting insurance buyers with carriers. CyberCube has built a solution to enable the growth of the cyber insurance market and support this important segment in the insurance value chain.”

Broking Manager is the third product in CyberCube’s suite of applications, alongside Portfolio Manager which is used by insurers to stress tests portfolios of cyber risks against dozens of cyber-based scenarios and  Account Manager, which is used to provide underwriting teams with a detailed analysis of cyber risk.

The company believes that a lack of historical data and the rapidly evolving nature of cyber risk and events which involve ‘active adversaries’ in the form of criminals or terrorists presents special challenges for evaluation of risk.

CyberCube has shared the process that shapes its cyber threat scenarios in a new paper titled 'Designing a Cyber Catastrophe' and it offers an insight into CyberCube’s scenario development process as the company creates new threat scenarios and refines existing ones. Theses  scenarios allow reinsurers and brokers that use CyberCube products to analyse and stress-test their portfolios of cyber risk, the company said.

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