The partnership will give Hiscox access to CyberCube’s Portfolio Manager product, which will be used for stress testing commercial insurance business against cyber-related catastrophe scenarios
Bermuda-based insurer Hiscox has signed an agreement with cyber risk analytics firm CyberCube to adopt its Portfolio Manager product to get better insights into potential cyber risks.
Leveraging CyberCube’s Portfolio Manager product, Hiscox will stress test its book of global commercial insurance business against several cyber-related catastrophe scenarios, including cloud outages and global ransomware attacks.
CyberCube CEO Pascal Millaire said: “As cyber risk becomes more prevalent within the insurance market – and indeed the wider world – analytics tools like those offered by CyberCube are becoming a core part of an insurer’s toolkit.
“We’re delighted to be partnering with Hiscox to provide insights from our risk model to augment Hiscox’s existing capabilities as a leading specialist insurer.”
The risk-modelling platform from CyberCube will help insurance market participants to reinforce their accumulation risk management and exposure measurement.
Risk carriers in insurance market want to identify and quantify cyber risk
Today, cyber risk poses a major threat within the international insurance markets as risk carriers want to identify and quantify cyber risk both in terms of standalone cyber insurance products and individual classes of business such property.
Hiscox underwriting risk director Robert Caton said: “We invest a great deal in understanding the risks we are exposed to. Cyber is an area where the potential for accumulation risk is easy to visualise and describe but challenging to size and calibrate as there have been few if any truly catastrophic market-wide losses.
“Partnering with CyberCube to access its modelling tools, data, and specialists perfectly complements the internal expertise and capability we have developed over the past few years.”
In November 2019, CyberCube secured $35m in a funding round led by HSCM Bermuda and ForgePoint Capital. The funding will be used by CyberCube in the next phase of its growth. The company offers software-as-a-service for cyber aggregation modelling and individual risk underwriting.
In addition to the funding, HSCM Bermuda managing partner Michael Millette will join CyberCube’s board of directors.
CyberCube was established in 2015, as a spin-off of Symantec and now it operates exclusively focused on the insurance industry.