Cyberinsurance part 3 – Risk Accumulation

The Cyberinsurance landscape is one that is currently growing at a fast pace. Expected to reach a market value of $14 Billion by 2020, insurance companies are currently looking to grow their portfolios of clients but they are doing it carefully.

The reason for most insurers being careful and cautious about expanding their portfolios is what is usually called "Risk Accumulation" and of course cyberinsurance is still a relatively new field, which doesn't have a lot of historical data that can be used for modeling and pricing...

At its most simple form, risk accumulation is a condition under which the insurer is exposed to the same type of risk from multiple different sources.

We've been working with our insurance clients to add the possibility of them observing different risk accumulation scenarios of the companies in their portfolios on our platform, and of course fully integrated with our entity mapping process (That way they need only to type the company name and we take care of finding all their assets).

On our platform, we've created some scenarios for Data exfiltration, Denial of Service, Cloud service provider failure and Financial Loss, with a correlation to different parts of typical policies (how we get to our results and full formulas can be found on the documentation).

Our Insurance clients can now see, for each of the mapped companies, the associated risk for each of the conditions of the set of default scenarios we have created. These scenarios are customizable and custom weighting and scoring or even new scenarios can be defined.

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