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CyberCube: Data-Driven Cyber Insurance Analytics Platform

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Rebecca Bole, Head of Industry Engagement, CyberCubeRebecca Bole, Head of Industry Engagement The proliferation of internet-connected technologies presents unprecedented cybersecurity challenges, requiring organisations to reliably transfer risk to insurance companies in order to grow their businesses securely. At the same time, insurance companies must thoroughly assess the cybersecurity posture of organisations before adding them to the portfolio. Since digital risk is a fast-evolving, man-made threat that can have a deep systemic impact across companies, geographical boundaries, and industries, the risk factors to take into account for underwriting, portfolio construction, and capital management are complex. It is crucial for the insurance industry to build solutions that sustain the financial impact of such digital risks, which makes risk analysis one of the fastest growing sectors of property and casualty (re)insurance today.

"Cyber risk is a dynamic, man-made peril that is evolving rapidly. The motivations of cyber attackers, their methods, and the technical vulnerabilities they exploit are constantly in flux. Developing a robust, forward-looking view of risk for (re) insurers is a complex and resource-intensive task," states Rebecca Bole, Head of Industry Engagement at CyberCube—the provider of a market-leading cyber risk analytics platform for the (re)insurance industry. "Cyber risk demands a new approach from traditional underwriting and risk management practices—insurers should seek out new data points, apply different analytics to these data sources and imagine loss scenarios that may not have yet occurred," Rebecca adds. By delivering the world's leading cyber risk analytics platform, CyberCube's mission is to enable society to make better decisions about risks to avoid, mitigate or insure, as interconnected technologies are changing the nature of risk in the 21st century.

Delivering a Cyber Risk Aggregation Model

With best-in-class data access and advanced multi-disciplinary analytics, CyberCube's software-as-a-service (SaaS) platform helps (re)insurance companies make better decisions when placing insurance cover for companies, underwriting cyber risk and managing risk aggregation. CyberCube's enterprise intelligence layer provides insights on millions of companies globally and includes modelling on over 1,000 single points of technology failure.

Born out of Symantec, a leading provider of cybersecurity products and solutions, CyberCube has a strong cybersecurity pedigree and is one of the few cyber analytics providers for risk aggregation. The company's team, made up of experts in a wide range of professions including cybersecurity, threat intelligence, artificial intelligence, data science, actuarial science, and (re)insurance, collectively creates a 360-degree view of cyber risks. In addition, as a cloud-based platform with fast, integrated, and scalable solutions, CyberCube not only expedites decision-making but also enables more informed decisions.

CyberCube offers three products to help the (re)insurance sector quantify the financial impact of cyber risk. The company's "Portfolio Manager" tool is a cyber risk aggregation model that allows (re)insurers to look at the frequency and severity of cyber catastrophe (cat) loss. The stochastic and deterministic views work on dozens of scenario sets, allowing (re)insurers to run multiple lines of business (LOBs) and ascertain not just standalone but overall cyber exposure. A scenario-based data driven model, Portfolio Manager enables risk managers to develop portfolio-level insights for their senior leadership and their working teams.

It gives them the ability to quickly access visualizations on exceedance probability metrics to include in management information packs, drill down and identify loss drivers and areas of accumulation risk or even dive into more granular details by scenario, risk class, and account level statistics, and also export data into Excel and CVS formatted files for additional company analysis.


We enable better financial management to our clients—help set cat loads, devise capital management/ retro purchase strategy, while our cloud-based software allows large portfolios to be run in minutes

In effect, the cloud-based technology allows for nearly instant access to full risk reports. The probabilistic and scenario models built by experts in insurance, actuarial science, and catastrophe modeling allow customizable frequency and severity views. Portfolio Manager also comes with a comprehensive and realistic scenario catalog developed by experts in cybersecurity, threat intelligence, data science, and economics along with terabytes of external and internal security data, enterprise data, and historical losses with multi-disciplinary analytics.

The second one in CyberCube's arsenal is the "Account Manager" tool that uses behind-the-firewall data and over 20 other sources to determine a company's cybersecurity posture, thus providing clear indicators of risk, and allowing carriers to assess underwriting criteria. "We enable better financial management to our clients—help set cat loads, devise capital management/retro purchase strategy, while our cloud-based software allows large portfolios to be run in minutes. Fast, efficient, and bespoke analysis enables us to put other P&C LOBs through the model as well as isolate or remove cost components to reflect policy coverage," highlights Rebecca.

In 2020, CyberCube will launch a third product, Broking Manager tool, which will allow clients to develop deeper insights on cyber risk transfer.

Overall, CyberCube analytics helps stimulate growth in three ways. Firstly, by equipping insurance underwriters with the tools to make better-informed individual risk selections. The company's unique data sets—in particular, behind-the-firewall data—allows underwriters to know more about the risk posture of potential insurers. This ability allows carriers to offer greater capacity to the right risks. Secondly, CyberCube empowers the reinsurance market to offer more capacity and more creative products to support insurance carrier growth. The platform is used by large reinsurers and their brokers to analyse (re)insurance portfolios for systemic, catastrophic exposures.

Lastly, by equipping exposure risk management teams to measure the probability and loss potential of systemic cyber attacks to an insurance portfolio, CyberCube allows carriers to determine the level of reinsurance necessary and optimise their risk-adjusted return on capital.

Keeping Pace with the Changing Cyber Threat Landscape

CyberCube's strategic partnership with Symantec goes a long way in providing clients with multi-dimensional views of cybersecurity and threat developments through a variety of lenses. "We have a curated database from a large number of data sources including unique inside-the-firewall telemetry from Symantec," mentions Rebecca.

In addition to utilising Symantec's data, CyberCube has built relationships with dozens of different partners. The company continues to add data sources and develop additional catastrophe scenarios into its model, keeping pace with change in the cyber threat landscape.

"CyberCube’s enterprise intelligence layer provides insights on millions of companies globally and includes modelling on over 1,000 single points of technology failure"

CyberCube's value proposition in the insurance industry was recognised and admired in July 2019 when the company was selected among hundreds of candidates as one of the World Economic Forum's "Technology Pioneers." Pioneers are early to growth-stage companies from around the world that are involved in the design, development, and deployment of new technologies and innovations, and are poised to have a significant impact on business and society. Past participants include Airbnb, Google, Mozilla, and Spotify.

Serving Insurance Companies Globally

A major differentiator for CyberCube is its multiple disciplinary team that allows a forward-looking view of risk, and to adequately assess risk/return for cyber perils. CyberCube's bench of advisors demonstrates this broad reach across cyber security, technology, and commercial insurance: Former-NSA Chief, Admiral (ret) Mike S. Rogers and former Swiss Re Group CUO, Matthias Weber are Board Directors. "We have an Advisory Board with deep insurance industry expertise, built over decades of leading (re)insurance businesses," mentions Rebecca.

This powerful team, coupled with its robust platform, has helped CyberCube garner some of the world's largest and most sophisticated insurance companies as its clientele. The list includes Munich Re, Chubb, CNA, Guy Carpenter, Aon and Scor, among others. Each of these organisations is using CyberCube analytics to enhance their own view of cyber risk. With 80 people across three locations currently, CyberCube is growing rapidly and looking to serve more insurance companies across the globe. "We will continue expanding our team to enable us to build the best solutions for our clients and effectively service their cyber analytics needs. In terms of developing new solutions and capabilities, we will be launching a new product next year aimed at helping brokers better advise their clients on cyber risk transfer," concludes Rebecca.

- Pamela Morgan
    December 19, 2019
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CyberCube

Company
CyberCube

Headquarters
London, UK

Management
Rebecca Bole, Head of Industry Engagement

Description
CyberCube’s provides a market-leading cyber risk analytics platform to help the (re)insurance sector quantify the financial impact of cyber catastrophe. With best-in-class data access and advanced multi-disciplinary analytics, the platform helps (re)insurance companies make better decisions when placing insurance, underwriting cyber risk and managing risk aggregation. CyberCube’s enterprise intelligence layer provides insights on millions of companies globally and includes modelling on over 1,000 single points of technology failure. Born out of Symantec, a leading provider of cybersecurity products and solutions, CyberCube has a strong cybersecurity pedigree and is one of the few cyber analytics providers for risk aggregation