Tel Aviv-based startup CyberWrite, which has developed a platform for the underwriting of cyber insurance policies, has been chosen by US research and consulting firm Gartner as a “cool vendor” in the insurance sector. Gartner’s definition of cool vendors relates to small companies that offer technology or a service that is innovative, impactful and intriguing.
In its report Gartner wrote: “Gartner’s Cool Vendors in insurance apply a broad range of emerging technologies to provide innovative products and services and support new business models.”
As the incidence of cyber-crime rises, more and more companies are turning to cyber-insurance policies to protect them when technology fails to do so. Insurance companies, however, are not yet geared up to know how to calculate and price what is perceived to be cyber-risk.
In response to this, CyberWrite has developed software that aims to provide insurance underwriters with information and tools they need to make decisions as to which coverage they should offer businesses worldwide. The solution combines advanced statistical analysis with machine learning of cyber risk trends, business specific information and cyber intelligence data to map the cyber risk of businesses and generate a one-page cyber insurance policy risk report. The report details cyber insurance coverage scores, details the risk factors and provides an estimated damage analysis.
The company provides insurance companies and underwriters an automated tool that helps these entities estimate the risk, and help them decide what the type of coverage they should offer and what premium they need to set for each specific client.
“Cyber insurance policies offered to small and midsize businesses are typically very broad and untailored, resulting in businesses paying extra for unneeded coverage while not being covered for the actual risks they face, and we are out to change this,” said Nir Perry, CEO of CyberWrite. “We are very proud to be included in the prestigious Gartner report. We believe that CyberWrite is set to shake things up in the coming years for the insurance industry.”
According to the US National Cyber Security Alliance, 60 percent of small companies are unable to sustain their businesses six months after a cyber attack. Allianz SE, a European financial services company headquartered in Germany, estimates that the cyber insurance market is expected grow by double-digit figures year on year, and could reach over $20 billion in annual premiums in the next 10 years.
“Cyber insurance is becoming essential to businesses as the only product that compensates them after an attack, when technology cannot provide total protection. We expect high demand for this type of insurance among small and mid-size businesses because of the high and growing number of damaging cyber attacks,” added Perry.
CyberWrite is one of only four insurtech companies globally to be recognized by Gartner as a Cool Vendor. Gartner’s insurtech database covers more than 1,000 startups.