Bermuda-headquartered specialist insurer Hiscox has agreed to implement CyberCube’s cyber analytics technology to better understand systemic cyber risk.
CyberCube, which was launched in January 2018, offers software-as-a-service for cyber aggregation modelling and individual risk underwriting.
Under the deal, CyberCube will provide insights from its risk model to enhance Hiscox’s existing capabilities.
CyberCube’s portfolio manager product will allow the specialist insurer to stress test its book of global commercial insurance business against various cyber-related catastrophe events like cloud outages and worldwide ransomware attacks.
Hiscox director of underwriting risk 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.”
Last year, Hiscox launched a new cyber exposure calculator to help businesses estimate the potential financial impact they could experience in the event of a cyber-attack.
CyberCube, which is based in the US, said its risk-modelling platform allows insurance market participants to reinforce their accumulation risk management and exposure measurement.
In June 2019, insurance firm Aon has selected CyberCube’s cyber insurance analytics platform to deliver new cyber (re)insurance solutions to its insurance carrier clients and prospects.