FICO Enterprise Security Score has been selected as Barbican Insurance Group's predictive analytic measure of cybersecurity risk for breach insurance underwriting.
The insurance firm will use the FICO Enterprise Security Score in underwriting decisions, and offer subscriptions to policy holders to promote ongoing cyber risk reduction.
Barbican is a multi-platform insurance group that underwrites business via its syndicates at Lloyd’s of London.
The FICO Enterprise Security Score offers an accurate and empirical assessment of the overall cyber risk exposure of an enterprise, which can be used by insurers for underwriting, pricing and ongoing portfolio management.
Barbican cyber business group leader Graeme King said: "We partnered with FICO because of its expertise and experience in predictive analytics and its strong focus on risk quantification.
"The FICO Enterprise Security Score gives our underwriters a predictive, stable and objective rating to help better assess cyber risks.
“It also encourages our insureds to improve their cybersecurity. Using the FICO Enterprise Security Score Portrait product, our insureds receive actionable information to help them proactively strengthen their defenses and reduce their exposure to potential risks.”
FICO Enterprise Security Score is based on an algorithm that uses supervised machine learning techniques to associate conditional and behavioral characteristics of organizations' security practices with data breaches.
The scoring range between 300 and 850 and offers a separation between high-risk and low-risk organisations. It is claimed to be the strongest predictor in the market to discern the go-forward cyber breach risk of any enterprise.
FICO cybersecurity solutions vice president Doug Clare said: "FICO has a history of delivering powerful risk metrics to the insurance industry and the consumer credit space. Partnering with Barbican Insurance to give their underwriting team the ability to better measure and manage their portfolio risk is part of our focus on delivering an industry-standard score to the cyber insurance market.
“By offering premium credit to their cyber policy holders for the use of the FICO Enterprise Security Score Portrait, Barbican is taking risk mitigation much further than the yearly assessments that are common today.”
Image: Barbican Insurance to use FICO’s cybersecurity analytics software. Photo: Courtesy of Chaiwat/FreeDigitalPhotos.net.