CyberCube Analytics, a San Francisco-based insurtech company that delivers cyber risk analytics to the insurance industry, is one of 56 companies named as 2019 Technology Pioneers by the World Economic Forum on July 1. CyberCube’s analytics platform was incubated within Symantec, a global cybersecurity company and since 2018 has operated as a standalone venture-backed company. The startup’s technology allows insurance companies to decide which digital risks to avoid, mitigate or insure as Internet-connected technologies change the nature of risk. Cyber insurance is one of the fastest-growing insurance lines to emerge in decades and is expected to reach $20 billion in premium revenue by 2025.
CyberCube’s customers include re-insurer Munich Re. The reinsurance industry is providing significant capital to nurture the growing cyber insurance marketplace. An extreme cyber event has the potential to deeply impact thousands of organizations at once and the accumulation of liabilities across multiple insured portfolios could result in substantial losses.
CNA, one of the largest U.S. commercial property and casualty insurance companies, is also using CyberCube’s platform as is AON, a global professional services firm that is using the startup’s platform to deliver cyber (re)insurance solutions to its insurance carrier clients and prospects.
Insurance carriers are increasingly looking for guidance on risk transfer, says CyberCube. Its cyber risk-modeling platform aims to enables its customers to guide their clients on accumulation risk management and exposure measurement.
« There is a lot you can tell about a company from its website, the IP addresses it owns and operates, the amount of botniks or viruses detected and compromised credentials linked to it that can be found on the Dark Web. All of this information is extremely valuable to an insurance company that is trying to evaluate the risk, » CEO Pascal Millaire, said in an interview with The Innovator at the World Economic Forum’s Annual Meeting of The New Champions in Dalian, China.
An enhanced grasp on potential exposures gives insurance carriers the confidence to price cover more accurately and offer more relevant products to their customers, he says.
Millaire predicts that preparedness against cyber attacks will impact every line of insurance, including automobiles and homes. « We think the potential of cyber analytics will be transformational to the future of insurance, » he says.