New cyber MGA launches with AXA XL backing to target large corporations

A new London-based managing general agent (MGA) has launched with backing from re/insurer  AXA XL, offering an innovative cyber insurance cover for large public corporations headquartered in the UK, with plans to extend its offering to the US market.

Newly launched data science-driven cyber underwriter Intangic MGA has developed what it claims to be the “industry’s first” parametric policy for public corporations’ fast recovery from the material impact of cyber threats.

CyFi, which is underwritten by AXA XL Insurance Company UK, is designed to provide smart parametric cyber cover that strengthens rather than replaces existing cyber indemnity policies, wherein the payouts are made within days when the triggers are met without the need for any claims adjustment. The policy has two parametric triggers: the level of malicious activity targeting a company, and a subsequent loss in value.

The triggers ensure that all parties have a transparent dashboard for the real-time monitoring of risk activity – “a first for an underwriter in the cyber insurance market,” the company claimed.

Intangic MGA aims to bring new capacity to the market to complement existing cyber indemnity cover. It is led by an executive team with a combination of expertise from insurance, data science, financial markets, and cyber security to offer a new model for the cyber insurance market.

Ryan Dodd (pictured) leads data science, technology and product vision, bringing real-world cyber and financial modelling experience, with Mark Heath serving as head of insurance and chief underwriting officer, heading up the MGA. Debbie Durkan has joined Intangic MGA to lead growth and client distribution. Dana Deasy has been appointed as chairman of Intangic and advisor to Intangic MGA. Chris Key will serve as a director of Intangic and advisor to Intangic MGA.

Dodd's experience includes 20 years as hedge fund manager (inc. Man GLG) and structuring financial risk products. Heath has 35 years of insurance experience, including senior executive roles in both underwriting and broking at AIG and Aon, as well as a background in risk financing and captive reinsurance. Durkan was most recently chief client officer at Marsh Commercial, and prior to that global head of development at Bowring Marsh, having over 25 years of client growth and development experience within major broking houses.

Deasy’s previous roles include chief information officer (CIO) for the US Department of Defence, CIO and MD at JP Morgan Chase, and CIO at BP. Key is a former chief product officer at Mandiant, a firm that specialises in threat intelligence and cyber security. He was also Founder and CEO of Verodin (acquired by FireEye/Mandiant).

Intangic is backed by Paladin Capital Group, with European General Manager and Principal Ken Pentimonti on Intangic MGA’s Board. Intangic offers public corporations with cover of up to $15 million (£ 12.5 million) in the UK market to cover losses from material cyber breaches. The startup plans to extend its offering to the US market.

Dodd, chief executive officer and founder of Intangic, said: “It really just comes down to thinking differently about the problem. The security teams at large corporations have to manage cyber threats all day, every day. Our approach assesses cyber as a high-frequency risk. By accepting cyber attacks as ‘constant’, we can measure a link between how these attacks are managed and the financial impact they have on corporate operations. Our parametric triggers make this link visible, enabling fast recovery from covered material breaches and giving corporations a new type of insurance risk transfer. By doing this, we have converted cyber risk to a language the board understands.”

“We brought multiple areas of risk expertise together to think about cyber differently and, through data science, we have converted what is considered an invisible risk into something more measurable and – ultimately visible – to large corporations,” added Dodd. “We want to demystify cyber to anyone outside of our customers' cyber security team. We can, as a result, help risk managers improve the overall effectiveness of their cyber insurance programmes, including timely payouts.”

“This is a simple and innovative solution to a complex problem,” said Luis Prato, chief underwriting officer, UK & Lloyd’s at AXA XL. “Intangic’s policy and the mechanisms behind it create a different way to approach risk and unlock capacity for cyber for large public corporations, helping them to strengthen their cyber risk programme.”

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