Leading data analytics provider Verisk has announced the latest release of ‘Analytics of Risk from Cyber’ (ARC), its cyber risk modelling platform designed to inform risk selection, portfolio management, and risk transfer.
This latest release hosts a comprehensive set of models powered by catastrophe modelling firm AIR, including individual risk models, aggregation risk models, and a new probabilistic systemic ransomware.
“Cyber risk is constantly evolving and growing, especially with the digital acceleration driven by the COVID-19 pandemic,” said Prashant Pai, vice president of Verisk Cyber Solutions.
“Likewise, we, as the insurance industry are recognizing that this growing risk impacts many of the cyber coverages; both affirmative and non-affirmative.
“In addition to the unique systemic ransomware model that is now available in ARC, this release features a number of innovations including a significantly enhanced web user interface that provides efficient workflows coupled with a powerful new financial model that more accurately models insurance terms specific to cyber.”
Other enhancements in ARC include access to a breadth of loss breakdowns by a range of event vectors and more than a dozen coverages; and the ability to automate workflows and integrate ARC’s analytics into a client’s internal applications by leveraging public APIs.
“The probabilistic ransomware model covers systemic ransomware events, that is, widescale events that affect more than one organization at a time,” said Scott Stransky, vice president & director of emerging risk modeling at AIR Worldwide.
“However, unlike an event that takes an entire cloud provider down and all the companies using that cloud with it, these ‘partial’ aggregation events only impact a percentage of organizations that are vulnerable to that particular method of attack, a problem that is particularly well-suited to stochastic modeling.
“For example, NotPetya impacted only a small fraction of the companies that had the necessary vulnerability – older, unpatched versions of SMB (Server Message Block), a protocol used to communicate between nodes on a network. By modeling many potential points of aggregation, we can capture a wide range of ransomware scenarios.”
