(Image source: Verisk promotional video for Cyber Underwriting Report.)
Verisk (Jersey City, N.J.), a data analytics provider, has launched Cyber Underwriting Report, a new solution, powered by Vai—Verisk artificial intelligence and automation—designed help insurers underwrite a wide variety of risks in the growing cyber market with increased speed and precision.
The report is designed to help insurers underwrite policies in a range of industries where cyber risks are constantly changing and historical data is limited, according to a Verisk statement. Verisk’s Cyber Underwriting Report helps address these challenges from both an insurance and cybersecurity perspective by leveraging 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, according to the statement.
The report provides to underwriters a cyber risk score for a company they are underwriting, a peer score to provide context, and a profile describing critical business and technology characteristics, all within seconds, according to Verisk
“Underwriting cyber has become a major challenge for many insurers trying to make informed decisions about a risk that can be hard to evaluate,” comments Prashant Pai, VP, cyber solutions, 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.”
Helping Insurers Access a $6.2 billion Market
Streamlining the process can help insurers underwrite greater volumes of cyber coverage in a market that Verisk estimates will reach $6.2 billion in premiums by 2020.
The report is the latest addition to Verisk’s cyber solutions suite, which includes advanced cyber risk modeling, 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, and independent third-party industry loss estimates for cyber risk and cyber catastrophe events. The solution suite is built on what the vendor characterizes as a best-in-class industry database that contains firmographic, technographic, and policy information on over 12 million businesses.