Cyber insurance provider Coalition has released its new Active Cyber Risk Model, a framework for understanding cyber risk aggregation that provides an ongoing view into organisations’ cyber risks and identifies preventive measures to protect against new threats.
The Active Cyber Risk Model, which offers a more accurate picture of cyber risk for organisations and the broader economy, is built on Coalition’s proprietary data collection platform and knowledge graph, which captures 48 trillion events every month.
The firm states that in a simulation modelled against a sampling of 5,000 American companies, it found that a one-in-250-year cyber event could cost more than $370 million in losses.
When extrapolated across the entire U.S. economy, a catastrophic cyber event could cost an estimated $29.8 billion in total losses, Coalition explains.
Joshua Motta, Chief Executive Officer and co-founder at Coalition commented, “As the industry continues to dwell on catastrophic cyber events and how best to offer coverage, if at all, one thing remains abundantly clear: cyber risk is insurable.
“The insurance industry is uniquely positioned and capable of mitigating and protecting organisations from emerging cyber risks, and we are committed to protecting the hundreds of thousands of customers we serve.”
Shawn Ram, Coalition’s Head of Insurance, said, “More data exists on cyber than any other risk. Using the right tools and systems to measure this risk can dramatically reduce potential impact.
“Unfortunately, we cannot prevent a catastrophic cyber event, but we can measure and contain catastrophic loss. For insurers, mapping cyber events to policyholders and the technologies they use are key to modeling aggregate risk.
“For businesses, the key to preparing for a catastrophic event is adopting proactive measures, like Coalition’s Active Insurance, and building a thoughtful response plan.”
In related news, Coalition recently announced that it is set to enter the excess cyber insurance market in the United Kingdom.
In early March, the firm conducted an exercise to assess the volume of cyber attacks directed against the UK’s capital, in which computers specially configured to make cyber criminals think they were small businesses operating in London were set up by Coalition.
Data showed that over 28 days in January, the devices were attacked 91 million times by over 101,000 different hackers. 77 million of these were attempts to hack into remote desktop connections used by employees working out of office.
