AXA XL has backed the launch of Intangic MGA, a data science-driven, London-based cyber Managing General Agent (MGA), that offers innovative cyber insurance cover for large public corporations headquartered in the UK.
The MGA is led by an executive team that possess a unique combination of expertise from insurance, data science, financial markets, and cyber security to offer a new model for the cyber insurance market.
Moreover, Intangic MGA has teamed with AXA XL for its cyber policy, CyFi™ which is underwritten by AXA XL Insurance Company UK Ltd.
CyFi™ is the industry’s first parametric policy to offer public corporations fast recovery from the material impact of cyber threats. Intangic confirmed that it will offer public corporations with cover up of up to $15 million (£12.5 million) in the UK market.
At the same time, the company also confirmed that plans to extend this offering to the US market, are currently underway.
The policy has two simple 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 within the cyber insurance market.
Once both triggers have been met, the claim will then be paid as soon as possible to get the business running efficiently again.
Further, by analysing thousands of different corporations over a number of years, Intangic found that companies struggling to manage the financial impact of cyber-attacks have, on average, a 250% higher probability of suffering material losses compared to peers who had better cyber-attack management.
Therefore, CyFi™ was designed to address the problem of constant cyber threats as early as possible to lower the probability of customers suffering significant losses from attacks.
Ryan Dodd, Chief Executive Officer and Founder of Intangic, commented: “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.”
“This is a simple and innovative solution to a complex problem. 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,” said Luis Prato, Chief Underwriting Officer, UK & Lloyd’s at AXA XL.
“Companies are looking for a new approach from the market and a clear, fast recovery from their insurance protection – our product offering provides this,” added Mark Heath, Head of Insurance and Chief Underwriting Officer, Intangic MGA.
Dodd, also added: “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.
“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.”
Ryan Dodd leads data science, technology and product vision at Intangic, bringing real-world cyber and financial modelling experience, including 20 years of service as hedge fund manager (inc. Man GLG) and structuring financial risk products.
Mark Heath joins Dodd as Head of Insurance and Chief Underwriting Officer. Overall, Heath has 35 years of industry experience, including senior executive roles in both underwriting and broking at AIG and Aon.
Additionally, Dana Deasy was appointed as Chairman of Intangic and advisor to Intangic MGA. Deasy’s previous roles include serving as Chief Information Officer (CIO) for the US Department of Defence, CIO and MD at JP Morgan Chase, and CIO at BP.
Chris Key will also serve as a Director of Intangic and advisor to Intangic MGA. Key is a former Chief Product Officer at Mandiant, and was also Founder and CEO of Verodin, Inc. (acquired by FireEye/Mandiant).
Intangic is backed by Paladin Capital Group, with European General Manager and Principal Ken Pentimonti on Intangic MGA’s Board.