Using technology to tackle cyber threats A startup CEO outlines how technology-enabled insurance is the answer to addressing cyber risk
A cybercriminal only has to nail an attack once. Those defending against it must prevent it 100% of the time. That’s the uneven playing field where the business world is battling it out against ever-evolving cyber threats. “I believe that insurance is the primary solution to cyber risk,” says Joshua Motta, co-founder and CEO of cyber risk startup Coalition. “However, cyber insurance needs to be about more than just risk transfer. It should be about setting appropriate incen-
tives, driving high standards and best practices, and helping businesses understand cyber risk exposures so they can decide how much risk to retain on their own balance sheets before transferring the remainder to an insurer. “The thing is, insurance as a tool for cyber risk management is about as effective as eating soup with a fork,” Motta continues. “The risk transfer is there, but more risk management and mitigation is needed – and that’s where I
Allstate’s Arity tackles distracted driving risks
Arity, a technology company founded by Allstate, has launched new technology to help insurers fully understand the risks of distracted driving. The company is incorporating data on distracted driving into driver scores, becoming the first provider to jointly analyze drivers’ on-theroad cell phone usage and corresponding claims data in order to generate insight into how distracted driving increases accident risk. Insurers can use those insights to reward customers who have more focused driving habits.
believe technology and insurance really need to come together into one coherent, holistic offering that addresses a client’s needs before, during and after a cyberattack.” To find the best way to mitigate and transfer cyber exposures, Coalition uses tech-
“Insurance today, as a tool for cyber risk management, is about as effective as eating soup with a fork” nology and Big Data in its cyber risk assessment and underwriting processes to replicate what a human adversary would do. “Cyber is a very complex risk,” Matta says. “In order to do any form of probabilistic modeling, you need an enormous amount of data points on any particular company. The risk scenarios always vary because of the vast differences between the companies themselves and how they utilize information technology.” While digital technologies are creating vast opportunities for organizations to become more competitive, these opportunities do come with new forms of risk. “Businesses now have troves of data and infrastructure to protect, which is complex and perpetually changing,” Motta says. “The combination of technology with insurance is absolutely the answer to addressing cyber risk in the future.”
Crawford & Co. partners with insurtech hub
Crawford & Company has formed a partnership with the Hartford InsurTech Hub in the hopes of “bringing more innovation to the industry, finding new ways to service clients more efficiently and [creating] more value for claimants through innovative solutions.” Crawford & Company’s involvement with the Connecticut-based incubator will allow the company to share its claims expertise to help startups come up with innovative solutions that can improve the efficiency of the claims management process.
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