Analytics firm Verisk has unveiled its new cyber underwriting report designed to help insurers underwrite cyber security.
The report leverages nearly 100,000 historical cyber events, combined with machine learning and sophisticated stochastic modeling, to provide estimates of the frequency and financial impacts of potential cyber incidents. The report gives underwriters a cyber risk score for a company they are underwriting, a peer score to provide context, and a profile describing business and technology characteristics.
The report is the latest addition to Verisk’s cyber solutions suite, which includes advanced cyber risk modeling, a nationwide insurance program with loss costs based on historical data, automated cyber rating updates that can be uploaded electronically into rating systems, market analysis tools to help identify opportunities for expansion in the cyber insurance space, and independent third-party industry loss estimates for cyber risk and cyber catastrophe events.
According to Verisk, streamlining the process can help insurers underwrite greater volumes of cyber coverage in a market that the analytics firm estimates will reach $6.2 billion in premiums by 2020.
“Underwriting cyber has become a major challenge for many insurers trying to make informed decisions about a risk that can be hard to evaluate,” said Prashant Pai, vice president of cyber solutions at Verisk. “With our new report, carriers, MGAs, brokers, and reinsurers will be able to quickly access robust data and insights that can help them accelerate and refine their underwriting.”