As data breaches continue to pose a major financial and reputational threat to businesses, transferring these risks through cyber insurance has become an increasingly attractive option. Demand is skyrocketing, leaving insurers to figure out how to offer adequate coverage while managing the increased risks associated with cyber liability. A recent Marsh brief notes, “As claims — specifically the cost of notifying affected persons about data breaches and providing credit monitoring and other services — have increased, underwriters have shown a greater interest in the information security practices and procedures of insureds.” Due to a lack of historical actuarial data on data breaches, insurers are vigilant of the security posture of insureds throughout the entire period of coverage. In addition, the rise of third party breaches now has the market looking at options to continuously monitor security posture throughout an insured's vendor networks and supply chain.
Responding to the risk management needs of the cyber insurance industry, BitSight announces our specially tailored cyber insurance solution: Security Ratings for Cyber Insurance. This product allows insurers to proactively gain a historical view of the security posture of prospective and current insureds. Daily Security Ratings give insurers a proactive view of all insureds and applicants, with specific details on a wealth of security event and diligence risk vectors. Insurers can add policy notes and track the overall portfolio risk in comparison to premium values, as well as factor in third party risks by monitoring vendors and suppliers.