Mountain View, CA-based cyber insurance firm At-Bay just launched.
The company said it is bringing a new model of security cooperation between insured and insurer to reduce risk and exposure.
At-bay is backed by The Hartford Steam Boiler Inspection and Insurance Company (HSB), part of Munich Re.
“We founded At-Bay with the belief that controlling for cyber risk enables businesses to embrace technology and unlock great value to customers,” said Rotem Iram, chief executive and founder at At-Bay. “We match deep insights on a company’s IT security with financial exposure that cyber attack vectors create, to enable insurance brokers and risk managers to more clearly and accurately assess and manage cyber risk. ”
“At-Bay’s data and knowledge-driven business model aligns with HSB’s own system of managing and underwriting cyber risk,” said Dave Mercier, senior vice president for HSB. “Their offering truly leverages the strengths of both companies.”
Organizations are increasingly digitizing their businesses and becoming more reliant on technology. Technology is not always secure to the point of being impenetrable and presents risk to users.
For the most part, risk is mitigated by security technology, but nothing is every 100 percent secure.
That means risk managers need to consider that despite all the security technology that is out there, there will always be residual risk best handled by cyber insurance.
Cyber insurance can be seen as a complement to cybersecurity technology used together to more fully mitigate the increasing risk of insecure digitization.
For the longest time, the primary problem for cyber insurers is there is no established history or an actuarial table to assess risk.
Insurance works best with static risk, but cyber risk is intrinsically dynamic — both the target and the attack methodology are continuously changing. Neither the insurer nor the insured currently understands how cybersecurity can be insured.
A survey by At-bay indicates 50 percent of companies that do not have cyber insurance say it is because they do not know enough about cyber insurance.
At-bay proposes to solve that issue by uniting cybersecurity understanding with cyber insurance delivery within one supplier.
At-Bay will leverage its deep data collection, discovery and enrichment technology to enable security experts to augment the model with heuristics on expected future risk. Risk insights are pushed into decision making in hours, so prospective and existing portfolio companies receive an updated and future looking assessment of risk.