Cyberwrite: helping insurers tackle cybercrime risk
Cybercrime is on the rise globally and insurers lack the technology and actuarial data needed for cyber underwriting and aggregated risk managment. Cyberwrite is a promising Israeli startup which helps insurers tackle the challenges of cyber insurance risk modeling and pricing. The Tel Aviv-based startup is developing a platform for the underwriting of cyber insurance policies for small and medium size businesses and enterprises. Their platform provides the underwriter the information and tools needed to make data-driven and evidence-based decisions as to which coverage they should offer businesses and with which sub-limits. Cyberwrites translates cybersecurity-related data they collect from various sources using innovative tools and machine learning algorithms into cyberinsurance policy recommendations in an agile, scalable and cost-effective manner. In addition the platform supports the brokers and carriers to educate the customers regarding the risks they are facing and provide a monetary impact assessment for each customer related to their unique cyber risks.
Cyberwrite provides an automated tool that enables insurance companies and underwriters a platform for cyber underwriting, estimating the risk and deciding the type of coverage they should offer for a specific client. The solution is a cloud-based platform; data is collected on several levels including customer specific data, geography relates risks and industry risks. The Cyberwrite platform searches for relevant data online and from trusted security partners that could indicate the levels of risk posed for a company and how that might translate into policy activation. There is a lot of information available and they map, filter and decide to present the underwriter with digested information that will serve them best. Providing the underwriter a report within minutes on the risk they face so the underwriter can get a clear picture of what the cyber risk means for them in insurance terminology they are used to working with.
Cyberwrite is currently in pilots with leading companies from the US and Europe and will officially launch next year. They are partnered with key security companies in Israel and the US for data gathering purposes and they are backed by leading investors and accelerators from the US and Europe.
Cyber risk is still unknown territory
Cybercrime is on the rise globally. Intrusions are becoming more common, more dangerous and more sophisticated and critical national infrastructures and businesses are all subject to the risk of an attack that could halt electricity supplies or expose sensitive corporate data. Cybercrime will cost businesses over $2 trillion by 2019, market analysts Juniper Research said in a report, almost four times the estimated cost of breaches in 2015. As a result, businesses are starting to protect themselves by buying cyber-insurance.
The problem is that insurers lack the technology and actuarial data needed for cyber underwriting. Insurance underwriting is historically done using actuarial data. The problem is a lack of 20 years of such data for cyber insurance policies. Today, underwriters decide the price based on a questionnaire and sometimes based on actual risk assessment teams sent to the customer. This is too costly and time-consuming and the process is not scalable. Because there is no 20-year history of actuarial data to draw upon, and cyberattacks are constantly changing, it is hard to assess risk based on actuarial data. In addition, each company has a unique information technology architecture.Why we selected Cyberwrite for DIA Munich
The cyber insurance market is a potentially huge but still untapped market for insurers. Businesses across all sectors are beginning to recognize the importance of cyber insurance in today’s increasingly complex and high risk digital landscape.
Because cyber insurance is so different from other fields there is no ‘one-size fits all’ process and policy for the client. Cyberwrite addresses this difference by giving the underwriter the tools and access to knowledge they need to provide the best coverage, reduce the risks, and increase sales for the insurers.
Who is Cyberwrite?
Founded in 2016 by Nir Perry (CEO) and Rotem Kerner (CTO) in Tel-Aviv. The company has offices in San Francisco and in Tel Aviv and graduated Citi Bank Accelerator. The company has raised seed round from investors such as SpeedInvest, Plug & Play and 500startups.
Nir Perry, CEO Cyberwrite
“We translate cybersecurity-related data we collect from various sources using our innovative tools and algorithms into cyber insurance policy recommendations and we price cyber risk in an agile, scalable and cost-effective manner. Using our solution insurance companies are enables to sell more policies and control the risks involved” Nir Perry, CEO and co-founder Cyberwrite
Presenter 1: Nir Perry
Presenter 2: Tony Cabot