Insurers Can Now Better Manage Ever-Changing Cyber Risk with Verisk’s New Cyber Risk Navigator
The cyber risk modeling platform will help the insurance industry understand the financial impact of cyber incidents
JERSEY CITY, N.J., May 17, 2021 (GLOBE NEWSWIRE) -- From data breaches and service provider outages to system failures and ransomware attacks, cyber risk is growing and intensifying, forcing many insurers to reconsider how they manage their cyber business. To help address this challenge, Verisk (Nasdaq: VRSK), a leading global data analytics provider, today launched , a next-generation cyber risk modeling and aggregation platform built to help insurers, reinsurers and brokers understand the financial impact of cyber incidents.
The new SaaS platform features a comprehensive suite of models to estimate potential insured cyber losses for individual incidents and thousands of aggregation scenarios. It includes both systemic and targeted ransomware models and several innovations that provide efficient workflows, and an enhanced robust financial model that more accurately incorporates insurance terms specific to cyber.
Cyber Risk Navigator reveals critical insights and empowers users to:
- Measure and monitor aggregations of cyber risk within a portfolio
- Enable risk modeling and data augmentation to manage and develop a custom view of risk
- Understand and adjust risk selection guidelines based on analytics output from robust models
- Develop full stochastic and historical scenario catalogs to facilitate a robust view of tail risk
- Leverage flexible financial modeling to support a wide range of affirmative cyber coverages and determine potential losses
- Analyze a breadth of loss breakdowns across diverse event vectors and coverages
"2020 has brought another set of lessons for us in the cyber insurance industry. Cyber risk is growing and intensifying, forcing insurers to reconsider how they manage their cyber portfolios," said Prashant Pai, general manager, Verisk Cyber Solutions. "Cyber Risk Navigator is a state-of-the-art solution created to help insurers address this challenge and improve pricing and risk selection."
Underlying the models is the Cyber Industry Exposure Database, featuring more than 100 million organizations worldwide, filling in gaps of exposure information using firmographics like revenue and employee count, and business and security data such as cloud service providers. With the platform, users can view losses across their portfolio for any service provider and determine which causes of cloud failure drive these losses.
"The new targeted ransomware model and inclusion of a proprietary set of technographic data are two of the most innovative modeling features of Cyber Risk Navigator," said Scott Stransky, vice president and director of cyber modeling for Verisk. "Losses from ransomware have driven cyber insurance claims for the past two years. We built a model that captures these events and includes the potential for them to correlate across portfolios.”
Cyber Risk Navigator uses proprietary, raw internet sensor data to develop Verisk’s own transparent cyber hygiene scores. The platform is trained with a gradient boosting machine learning model and calibrated against actual cyber insurance claims. The raw sensor data has also enhanced Verisk’s service provider failure models, which now go beyond the cloud to include content delivery network and email outages. The sensor data can help capture not just whether an insured relies upon a service but also quantify the volume of traffic flowing between the company and that service.
"The number of cyber incidents is growing, and the causes of these cases are constantly evolving, making the demand for cyber insurance greater than ever," concluded Pai. "Understanding what drives cyber risk is an important start for insurers, but they need tools to make better risk management decisions and stay ahead of the ever-changing threats. We designed Cyber Risk Navigator to enable insurers to confidently grow their portfolios in an ultra-competitive, dynamic market."
Cyber Risk Navigator is a part of , an end-to-end ecosystem that can help insurers and reinsurers more quickly deliver new cyber programs or enhance existing solutions. Powered by data on more than 100 million organizations worldwide, the suite provides a wide range of products and services, including a pricing, underwriting, and distribution platform; advisory policy language and loss costs; applicant analytics and scoring solution; a portfolio visualization engine; and aggregation management modeling for cyber risk. Verisk's Cyber Solutions Suite was named at the InsuranceERM Annual Awards 2020 – Americas.
About Verisk
Verisk (Nasdaq:VRSK) provides predictive analytics and decision-support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company's advanced technologies to manage risks, make better decisions and improve operating efficiency. The company's analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social, and governance (ESG) matters. Celebrating its 50th anniversary, the company continues to make the world better, safer and stronger, and fosters an inclusive and diverse where all team members feel they belong. With more than 100 offices in nearly 35 countries, Verisk consistently earns certification by .
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Contact:
Alberto Canal
Verisk
201-469-2618
