The case for AI in cyber insurance

One of the biggest challenges for carriers and brokers dealing with cyber insurance is how to accurately predict cyber risk, quantify it in financial terms, and communicate it to underwriters and insureds. Too much data can be as much of a problem as too little without the use of advanced analytics such as machine learning models and AI, and using such tools can enable the visibility of which businesses have a higher risk than others.

That is the view of Nir Perry, CEO and founder of Cyberwrite, a cyber insurance technologies firm founded in 2017 and serving some of the world's leading reinsurers, carriers, and broker firms, including Munich Re, HSB, Markel, Howden, CRC, MAPFRE and many more.

Speaking in the aftermath of Cyber Risk & Insurance Innovation Europe 2024, an Intelligent Insurer event that took place in London in February, Perry shared his insights on the challenges his customers are facing and how they solve them, and the critical part of the Cyberwrite technology in that process.

“One of the key challenges is making sense of data in an agile manner,” he said. “Some carriers deal with hundreds of thousands of customers, so it is important to have a way of collecting data at scale and making sense of the data in a straightforward and agile manner. Our customers demand visibility of the data, and analytics utilize it for real-time underwriting and sales of cyber insurance. Ultimately, that helps them make better underwriting decisions and results in reduced loss ratios.”

It also helps brokers easily explain to clients why they need cyber insurance, how much they might need, what their biggest risks are, and how they can mitigate it using the Cyberwrite easy-to-understand report. Cyberwrite has data on over 100 million companies worldwide and provides that data in seven languages.

"The Cyberwrite technology is powered by patented artificial intelligence (ML & AI) created specifically for cyber insurance underwriting. This enables insights on cyber risk in seconds that would take a human day to realize and articulate manually", Perry added.

“It comes down to offering underwriters and brokers simple and actionable risk insights and recommendations that enable them to make better risk selection and sell more cyber policies. We are helping the industry grow and prosper year after year using our technology. Many small companies cannot afford cyber risk projects that large corporations benefit from - Cyberwrite is closing this gap, and using our report, any company can have a cyber risk assessment tailored to their needs."

The full interview with Perry can be viewed here.