BitSight and Kovrr begin partnership by estimating insured losses from the SolarWinds hack at $90M
BOSTON AND TEL AVIV – January 12, 2021 — BitSight, the Standard in Security Ratings, and Kovrr, a leader in data-driven cyber risk modeling, today announced a partnership to deliver the industry’s most comprehensive data-driven cyber risk financial quantification solution for the insurance market. The BitSight-Kovrr Financial Quantification for Insurance Cyber Risk gives cyber insurers the tools required to make decisions more accurately and confidently about key areas of the cyber insurance business including underwriting, modeling, and portfolio management.
To begin the partnership, BitSight and Kovrr released a joint financial analysis of the impact of the unprecedented 2020 SolarWinds attack to the insurance industry, estimating the insured losses to be $90,000,000. This analysis was made possible by BitSight and Kovrr’s ability to identify unique breach elements as cost components, including the size, location, and industry of the organizations impacted by SolarWinds.
Together, BitSight and Kovrr are delivering a comprehensive end-to-end solution that allows cyber insurers globally to underwrite companies of any size, from any geography and industry; model individual risk and portfolio exposure; and engage insureds with detailed visibility into their security posture. The BitSight-Kovrr Financial Quantification of Cyber Risk combines BitSight’s industry-leading data and analytics on company-specific cybersecurity performance and fourth-party aggregate risk, with Kovrr’s advanced cyber risk multi-model technology to deliver the cyber insurance market’s most comprehensive, data-driven end-to-end solution for underwriting and portfolio management. Allianz Global Corporate and Specialty (AGCS) is one of the first insurance carriers that has selected BitSight and Kovrr to advance their own cyber insurance underwriting and portfolio risk management capabilities.
Cyber insurance claims are on the rise, driven by an increase in cyber-attacks from ransomware, phishing, third-party breaches and more. According to AON, U.S. cyber insurers saw a 10% loss ratio increase due to ransomware in 2019. Cyber insurers are forced to pay out more in claims than they had anticipated, leading to worsening loss ratios and ultimately, diminishing profitability. The BitSight-Kovrr Financial Quantification of Cyber Risk solves for the lack of historic and real-time security performance data on individual organizations, which has previously challenged cyber insurers to make informed underwriting decisions and negatively impacted risk modeling approaches.
“The cyber insurance market requires data that is specific, relevant, accurate, current, and transparent,” said Dave Fachetti, chief strategy officer at BitSight. “BitSight offers the most comprehensive externally observable data on organization security performance in the industry. The combination of BitSight’s data and analytics and Kovrr’s comprehensive, automated, and scalable modeling technology will be crucial to address the industry need for a more accurate and consistent approach to making key underwriting and portfolio management decisions related to cyber risk.”
Yakir Golan, CEO of Kovrr, stated “Understanding and modeling the impact of major cyber incidents on an insurer’s portfolio is key for enabling further growth of the cyber insurance industry. The BitSight-Kovrr solution allows cyber insurers to fully operationalize initiatives from single risk underwriting to portfolio risk accumulation management. We’re excited to join forces with BitSight in support of the global insurance community.”
For information about the BitSight-Kovrr Financial Quantification for Insurance Cyber Risk solution please visit https://www.bitsight.com/security-ratings-cyber-insurance.
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BitSight transforms how organizations manage cyber risk. The BitSight Security Ratings Platform applies sophisticated algorithms, producing daily security ratings that range from 250 to 900, to help organizations manage their own security performance; mitigate third party risk; underwrite cyber insurance policies; conduct financial diligence; and assess aggregate risk. With over 2,100 global customers and the largest ecosystem of users and information, BitSight is the Standard in Security Ratings. For more information, please visit www.bitsight.com, read our blog or follow @BitSight on Twitter.
Kovrr’s cyber risk modeling platform delivers global (re)insurers transparent, data driven insights into their affirmative and non-affirmative cyber risk exposures. The Kovrr platform is designed to help underwriters, exposure managers and catastrophe modelers understand, financially quantify and manage cyber risk by utilizing AI-powered risk models. For more information, please visit www.kovrr.com or follow us on Twitter or LinkedIn.