As the digital landscape continues to accelerate, cybersecurity threats continue to evolve and have raised the prominence of the cyber insurtech, reflecting an innovative intersection of cyber security technologies and cyber insurance solutions, according to Massimiliano Rijllo, CEO of Coinnect.
Coinnect is a cyber insurtech firm which provides services and platforms for cyber risk assessment, mitigation, and incident response.
The company’s offering, via its unique cyber insurtech platform, enables insurance players to both complement and enhance their cyber insurance offering.
As the cyber insurtech world continues to evolve, we sat down with Coinnect’s CEO, Rijllo, to understand why this new sector is gaining traction, discuss recent developments in Europe, and what sets his firm apart in this challenging landscape.
To start, Rijllo offered his insights on the current state of the cyber insurtech space in Europe, highlighting some of the key trends and developments.
“The Cyber Insurtech sector in Europe is still in its early stages,” said Rijllo. “Even with the escalating significance of cyber risks, there’s a limited number of players who have stepped into this arena. Coinnect is proud to be among these pioneers. Our unique approach involves providing a Cyber Insurtech platform that enables insurers to seamlessly integrate cyber protection within their insurance offerings.
“We’re not just another insurance provider; we’re facilitators of a more robust and comprehensive solution to cyber threats. This has been validated by a recent report from AGC Partners, a world leading tech investment bank, which recognizes us as part of an exclusive group of companies worldwide that operate in this innovative Cyber Insurtech space. As cyber threats continue to diversify and grow, we anticipate a rising need for such integrative approaches.”
Given the ongoing evolution of the cyber insurance market and traditional players, some might question the need for a specialised sector like cyber insurtech, but Rijllo explained that the traditional model still fails to address some of the issues.
“The traditional insurance model is centered around risk assessment often performed using questionnaires or similar evaluation methods. This model, while effective for more static and predictable risks, falls short when dealing with cyber threats. The nature of cyber risk is such that it’s too complex, dynamic, and rapidly evolving to be accurately captured by a simple questionnaire.
“Proactive and continuous risk monitoring is not just a bonus in this field – it’s a necessity. Especially for Small and Medium-sized Businesses (SMBs), which may not have the resources or expertise to implement effective cybersecurity measures, an integrated approach to risk mitigation and transfer becomes crucial. By bundling cyber protection with insurance offerings, we’re enabling insurers to support these businesses more effectively,” said Rijllo.
“This is not just about risk transfer, but also about risk reduction. When insurers become partners in proactive risk mitigation, it benefits both parties. The businesses are better protected, and the insurers face lower potential payouts. In the end, it’s a win-win situation, and that’s the essence of Cyber Insurtech,” he added.
In an increasingly digital world, cybersecurity threats are also evolving. Although, as noted by Rijllo, the lion’s share of claims today, possibly as much as 85% or more, can be traced back to ransomware attacks.
“Ransomware has evolved to become a significant threat in the cyber landscape, with new variants constantly emerging, each more sophisticated than the last,” explained Rijllo.
At Coinnect, he continued, there’s a recognition of both the urgency and severity of the risk.
“Our solution involves unique cyber intelligence tools that extract ransomware and cyber intelligence data from the dark web, providing a detailed and up-to-date threat perspective. We enable insurers to not only assess the potential risks faced by their clients but also continuously monitor these risks. This approach transforms the static risk assessment process into a dynamic one, which is crucial given the rapidly changing nature of cyber threats. In doing so, we equip insurers to provide their clients with robust and timely protection against evolving cyber risks, particularly ransomware,” said Rijllo.
To conclude, Rijllo shared his views on the future of cyber insurance, noting ways in which technology will transform how underwriters evaluate prospects and aid in mitigating risks for clients.
“The future of cyber insurance is set to be revolutionized by sophisticated Cyber Insurtech technologies. The sheer speed, scale, and complexity of cyber risks have outpaced traditional underwriting methods. As we move forward, leveraging advanced technology isn’t just an option; it’s a necessity.
“Take the example of artificial intelligence. At Coinnect, we are using advanced AI technologies coupled with cyber intelligence data to perform real-time risk assessments. This would typically require hours of joint effort from cyber underwriters and experts working together to assess and understand a client’s potential cyber risk. The results we’ve achieved using AI have been nothing short of impressive.
“This isn’t to say that humans will be rendered obsolete. Instead, these tech tools will simplify and amplify their work, increasing efficiency and accuracy. They will enable underwriters to do their jobs more effectively, keeping up with the dynamic cyber threat landscape. And this is just the beginning. We’re at the cusp of a major transformation in the cyber insurance industry, driven by the power of technology,” said Rijllo.
