Sapiens Adds Kovrr to Partner Ecosystem

Sapiens partnership with the predictive cyber risk modeling firm will enable U.K. insurers to comply with PRA regulations and manage cyber risk.

(Image source: Pixabay.)

Sapiens International Corporation, (Holon, Israel), a global provider of software solutions for the insurance industry, has announced the addition of with Kovrr, a London-based predictive cyber risk modeling firm, to the Sapiens partner ecosystem. The partnership fits within Sapiens’ strategy to maximize its open-API architecture and make innovative third-party and InsureTech solutions available to its customers. Kovrr’s technology specifically addresses challenges U.K. insurers face in the light of new regulation from the Bank of England’s Prudential Regulation Authority (PRA).

Yakir Golan, CEO, Kovrr.

After previously setting out expectations for insurers on the prudent management of cyber underwriting risk in its “Supervisory Statement SS4/17: Cyber Insurance Underwriting Risk” communication, the PRA followed up by publicizing the results of an insurer survey. Insurers were instructed by the PRA to reduce the unintended exposure to non-affirmative cyber risk. Non-affirmative (silent) cyber risk occurs when insurance policies do not explicitly factor cyber risk. This creates potential exposure for a cyber event to “silently” trigger policy losses through a large-scale, catastrophic cyber event.

Kovrr’s predictive cyber risk modeling platform is designed to deliver transparent, real-time, data-driven insights to global insurers and reinsurers regarding their affirmative and non-affirmative single, accumulated and catastrophic cyber risk exposures. The platform provides insurance professionals with loss predictions based on diverse cyber risk scenarios that can affect businesses within an insurer’s portfolio, or companies they wish to insure. Insurers can make decisions about coverages and pricing, and ensure decisions are aligned with their risk appetite, via tools to manage their cyber risk accumulations.

To help its clients meet the PRA’s new requirements and develop the requested action plans, Sapiens says it will offer its relevant solutions, including Sapiens IDITSuite for Property & Casualty, with Kovrr’s industry-leading cyber risk modeling platform. This will empower (re)insurer underwriters, exposure managers and catastrophe modelers to meet the PRA’s new standards, according to a Sapiens statement.

Visibility into the Full Spectrum of Cyber Risk

“Today’s insurers are increasingly exposed to cyber risk,” comments Yakir Golan, CEO, Kovrr. “Cyber risk now affects all lines of insurance. Potentially catastrophic events—such as an oil tanker or cargo ship crashing after its navigation system was hacked, or the national electricity grid becoming compromised—may lead to numerous cyber-triggered insurance claims. The Kovrr-Sapiens partnership will help existing and potential Sapiens customers obtain real visibility into the full spectrum of cyber risk they face, as well as helping them comply with the PRA’s requirements, both now and in the future.”

Sapiens Releases New Version of IDITSuite for P&C

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

Leave a Comment

(required)