Digital Insurance Agenda

CyberCube: Stress test (re)insurance portfolios against cyber-related scenarios

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on Dec 30, 2021

CyberCube has released a new edition of Portfolio Manager, which allows insurers to stress test (re)insurance portfolios against a range of systemic cyber-related scenarios including data breaches, cloud outages, global ransomware attacks and financial fraud. It is the first fully probabilistic cyber catastrophe model to enable clients to drill down and identify loss drivers and areas of risk accumulation. 

In response to the rapid evolution of cyber threats during the pandemic and feedback from clients, Portfolio Manager v3.0 contains new industry-sponsored threat scenarios including cloud failures, business blackouts and contagious ransomware. The portfolio risk management solution includes structural enhancements to the cyber catastrophe model, advanced contract loss modelling capabilities and the ability to compare attritional and large losses impacting individual companies with catastrophic losses impacting multiple companies in an insurance portfolio. 

The Lloyd’s Market Association’s Cyber Risk Strategy Group has also been heavily involved in developing the scenarios over the past 15 months.  

By analysing how portfolios of insurance risks are affected, Lloyd’s can assess each syndicate’s financial resilience and the market. The scenarios expose the most up-to-date threat landscape and associated cyber threats that cause significant loss accumulations. The creation of new realistic scenarios will make Lloyd’s more relevant in a post covid world. CyberCube has introduced the three scenarios for realistic cyber disasters as part of its Portfolio Manager product, which is used by risk carriers. The three scenarios, which CyberCube designed in conjunction with Lloyd’s Underwriting team, Lloyd’s market practitioners and Guy Carpenter, are: (1) a cloud outage, (2) a power or infrastructure outage, (3) a major malware attack 

The update is timely in that the prospects of a rise in new threat actors and attacks are rising exponentially. 

Who is CyberCube? 

CyberCube is a SaaS technology company, with a strong pedigree in cybersecurity and technology and deep expertise in insurance. CyberCube’s mission is to deliver the world’s leading cyber risk analytics. CyberCube enables society to make better decisions about which digital risks to avoid, mitigate or insure as internet-connected technologies change the nature of risk in the 21st century. 

Born out of the world’s leading cybersecurity company, Symantec, CyberCube has strong financial backing and governance from cybersecurity and insurtech specialist investors and is positioned to build the leading platform for powering profitable cyber insurance growth. Their innovative approach to cyber analytics helps the cyber insurance market to grow profitably, giving insurers the ability to take insight-driven risk decisions, see trends before they become claims and tackle complex and important challenges. The company’s deep bench of experts from data science, security, threat intelligence, actuarial science, software engineering and insurance helps the global insurance industry by selecting the best sources of data and curating it into data sets to identify trustworthy early indicators of risks and build a forward-looking view of them. 

In 2019, CyberCube secured $40mn in Series B raise to accelerate market-leading cyber risk analytics for the insurance industry. The company has a geographical presence in San Francisco, New York and Chicago, US; London, UK and Tallinn, Estonia.  

Vast track record in the global insurance industry 

CyberCube partners with some of the world’s largest and most sophisticated global insurance institutions to power their growth. Some publicly announced clients include Aon, Guy Carpenter, Munich Re, Hiscox, Tokio Marine, Chubb and many other (re)insurance carrier and broker users of CyberCube’s Portfolio Manager, Account Manager, and Broking Manager product range. 

Catherine Mulligan, Global Head of Cyber, Reinsurance Solutions Group, says: “Our collaboration with CyberCube enhances our multi-model approach, which enables insurers to more accurately quantify aggregation in their portfolio for more informed underwriting, while helping customers to understand their own cyber exposures and develop appropriate controls.” 

Stefan Golling, Chief Underwriter, Munich Re says: “Leveraging the capabilities of CyberCube will help our underwriting and risk modelling teams in better quantifying cyber risk and understanding potential cyber accumulation scenarios” 

Winner of many awards 

From the beginning of its development, CyberCube has won multiple awards, starting out with a World Economic Forum Technology Pioneers of 2019 award which brought together 56 early to growth-stage companies from around the world that are pioneering new technologies and innovations ranging from the use of artificial intelligence to quantum computing systems. 

More recently, in 2021 CyberCube has won 17 awards and top 100 listings for its Cyber Product of the Year, or InsurTech initiatives. CyberCube was a winner at prestigious awards gatherings held by Insurance Times, Insurance Insider (Trading Risk), and InsuranceERM to name but a few. 

“In a world with billions of IoT devices, the explosion of data and automation of industries, cyber risk will reshape risk, the economy and society, and therefore the entire P&C insurance industry.”

Pascal Millaire – CEO CyberCube
DIA Amsterdam 29-30 June

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