Cybersecurity

A Look into the Rapidly Growing World of Cyber Insurance

Our world has become digital in almost every possible way. This has given hackers the ability to take control and threaten everything for the ATMs we use every day to some of the world’s biggest political elections. While it might be smart to invest in solid security, this is not always a safe bet in its own.

It has become increasingly clear that a standalone defense is not good enough and other services should be utilized in order to ensure a business can survive if the unthinkable happens. One of these services is the use of Cyber Insurance.

Cyber insurance is an internet product that is used for securing businesses from internet-based risks. Cyber insurance policies involve coverage of expenses that the company bears against theft, extortion, hacking, and losses. The expenditures also cover costs for notifying customers regarding the security breach and regulatory compliance fines.

A recent report by Zion Market Research states that the global cyber insurance market accounted for $4.2 billion in 2017 and is expected to reach $22.8 billion globally by 2024, growing at a CAGR of around 27% between 2018 and 2024.

Some of the major cyber insurance companies are turning heads for the high-profile figures they  drawing into the space. CyberCube, a leading provider of cyber risk analytics for the insurance industry, today announced the addition of Admiral (Ret.) Michael S Rogers to its Board of Directors in the first private sector position he has taken since retiring from a 37-year career in the military. From 2014 to 2018, Michael Rogers concurrently served as Director of the National Security Agency (NSA), Commander of the U.S. Cyber Command (USCYBERCOM) and Chief of the Central Security Service.

“The insurance industry has an increasingly important role to play in making companies more resilient to cyber attacks,” Rogers stated. “Providing the cyber insurance market with better cyber risk analytics enables insurers to grow more sustainably and help more enterprises understand, mitigate and insure cyber risk”.

The CyberCube platform was established in 2015 within Symantec, the global leader in cyber security, and now operates as an independent company. CyberCube’s software platform enables insurers to better underwrite cyber insurance risks and to model catastrophic cyber events. Symantec provides an exclusive, proprietary telemetry data license to augment CyberCube’s risk models, as well as access to its managed adversary and threat intelligence team (MATI).

“It is hard to imagine anyone on the planet better placed to support CyberCube in modeling the impact of catastrophic cyber events on the economy,” Pascal Millaire, CEO of CyberCube, said of Rogers. “Having an understanding of the threat actor landscape is essential to understand the scenarios that could cause billions of dollars of losses to insurer balance sheets.”

Evidently, we are entering a new world where cyber protection is no longer a reliable lifeline for a businesses to rely on. A backup plan that allows businesses to get back on their feet is essential. Businesses like CyberCube allow companies to focus on what they do best without worrying about the catastrophic impact and havoc that an attack can cause.

Disclosure: This article includes a client of an Espacio portfolio company.

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Patrick is a writer from Baltimore who covers finance, emerging technologies, startups, and culture. He previously worked as a managing editor at The Agora, one of the largest private publishing institutions in the world.

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