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Verisk (Jersey City, N.J.), a provider of data analytics to the insurance industry, has announced the creation of its Cyber Data Exchange, an analytics solution that aggregates cyber insurance data to help insurers gain insights into the market and improve strategic decision making.
Verisk pitches the Exchange as addressing the challenges faced by insurers lacking access to broad-based, credible, and relevant data in the cyber insurance value chain, which hampers making well-informed, strategic decisions about their portfolios, individual policies, and even which coverages they can confidently offer. The solution allows participating companies to contribute their data to the exchange, where it is aggregated, summarized, and developed into business intelligence and then returned to these companies through interactive dashboards.
Verisk reports that it seeks to broaden the solution further with a wide range of participants, including managing general agents (MGAs), insurers, reinsurers, and brokers. The vendor says that several prominent cyber insurers are already committed to participate.
“The lack of credible quality cyber insurance data is a clear challenge for many insurers. Verisk is helping to solve this problem with the launch of its Cyber Data Exchange,” comments Prashant Pai, VP, Cyber Solutions, Verisk. “By aggregating anonymized industrywide cyber data and delivering actionable metrics and insights, we give companies information that can help them benchmark their portfolios, better understand which segments of business are most profitable, and enhance their internal analytics.”
The Cyber Data Exchange is the latest addition to Verisk’s cyber solutions suite, which includes the following, as described by the vendor:
- Advanced cyber risk modeling that identifies aggregation risk sources and portfolio aggregation scenarios to estimate potential portfolio cyber losses
- An InsurTech underwriting solution for issuing cyber policies with increased speed and precision
- A fully developed nationwide insurance program with loss costs based on extensive 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
- Independent third-party industry loss estimates for cyber risk and cyber catastrophe events
Verisk’s describes its cyber solution suite as being built on a best-in-class industry database that contains firmographic, technographic, and policy information on more than 12 million businesses.