Cyber and data risks are among the top concerns faced by enterprises today. Organizations are under a constant threat of being the victim of a cyber attack as technology progresses at a rapid pace. Cyber insurance helps organizations address the risks associated with modern technologies by offsetting costs involved with recovery after a cyber-related security breach or similar event.
A company which utilizes machine learning to help organizations understand their cyber risk profile and financial exposure to cyber-attacks is Cyberwrite. The company provides a proven AI-based Cyber Risk Profiling technology to global corporates with use cases ranging from cyber insurance underwriting to vendor risk management and know-your-customer (Cyber KYC) applications for the banking industry.
Cyberwrite helps its customers analyze the risks they are exposed to from third-parties and provide bottom-line underwriting or risk benchmark score, at scale for millions of organizations worldwide.
The Journey to Innovation
Cyberwrite was established in 2016 to enable insurance companies with a technology that automates cyber risk underwriting for cyber insurance policies. Following the success with some of the largest insurance companies in the US and the UK, the company has expanded its offering to additional use cases including innovation in cyber vendor risk management and cyber-KYC.
The company feels that one of the primary challenges its customers face is to profile and benchmark third-party cyber risk levels in a way that is quantitative, predictive and cost-efficient. The main issue with existing solutions today is that organizations need an army of security experts to make sense of their reports which can reach over 100 pages and can take hours to analyze. Cyberwrite solutions analyse large data in a quick and transparent way thereby saving considerable time and money.
By using Cyberwrite, customers can manage the risk of doing business with a growing number of organizations and mitigate it. One of the Cyberwrite’s customers profiled twelve-thousand companies and was able to prioritize the ones which are at the highest risk and how they accumulate it. Another customer from Lloyd’s of London used Cyberwrite’s solution to manage cyber insurance aggregation as well as for automated underwriting using its APIs. The company’s huge success is validated by the fact that leading companies worldwide are using Cyberwrite’s models and analytics solutions to mitigate risk.
The company was founded by Nir Perry, Cyberwrite’s CEO who previously worked at Accenture and PWC, and consulted to some of the largest organizations globally on cyber risk strategy and digital innovation. Nir holds an MBA from the Milano Politecnico School of Management, a Law degree, and is working in the cyber risk domain since 2001 in different roles and organizations. Together with Nir, the company is led by a team of leading experts – Mr. Rami Parient is the Chief Data Scientist at Cyberwrite who worked as Chief Risk Officer in large corporates. He previously served as the Chief P&C actuary and Data Scientist for 15 years in charge of billions of dollars in premiums written over the years. Rami was also a professor of statistics in Israel. The company’s Vice President, R&D, Mr. Giora Kosoi worked previously at IBM, and Cisco in leading roles of cyber security R&D, and the Head of Research – Uri Fleyder-Kotler led the Cybercrime Research Lab at RSA (Dell EMC).
Predicting Cyber Risk Powered by Machine Learning
Cyberwrite has developed a proprietary machine learning algorithm which is capable of benchmarking companies in different sectors and geographies. It can predict which companies are at a higher risk of monetary damages as a result of a wide range of possible cyber incidents and estimate how much of a financial loss they will suffer. It also offers the analysis in per damage type (e.g.: downtime, extortion, stolen records, etc.). The company has developed this unique analytics engine based on extensive R&D efforts conducted in its cyber research lab in Israel with various types of data, causality, and predictions that impact cyber risk with specific focus on SMB’s (Small and Midsize Businesses). The platform requires a few data points from the customer and can process the data in a quick and frictionless manner. Moreover, a user does not need to be a cyber expert to make sense of all this data – the solution does it for them within a few minutes.
The Convergence of AI, Cloud and Big Data to Enhance Security
Enterprises are constantly looking at adopting the latest and more innovative technologies to enhance security. “The combination of available computing power in the cloud, big data technologies that have already matured, and AI is something that will create a strong impact on a large number of organizations and individuals in the coming years. Some for the better and some for worse as automation is everywhere. At the same time, the same tools and methods that security researchers are leveraging to help us protect digital assets can also be used by cyber criminals to wreak havoc and put data at risk,” asserts Nir.
Nir believes that an innovative company overcomes technological challenges and barriers as an underlying asset to help their target customers using functional innovation. If the innovation is not functional in the real world, it is not viable as a business. “At the end of the day, an innovative team makes an innovative company”.
Awards and Recognitions
Cyberwrite was recognized by Gartner as a Cool Vendor in 2018 as part of an independent report and was recognized by organizations such as Citi Bank, Plug& Play, 500 Startups, and the UK Government as a leading innovative startup. The company’s clientele includes Fortune 500 customers, as well as smaller organizations in need of cyber profiling technology and services that can enable them to be compliant with regulatory demands such as GDPR and
stay in line with risk management best practices. Cyberwrite customers have reported a positive correlation between Cyberwrite predictions and actual cyber incidents in 2018.
Turning Challenges into Opportunities
Cyberwrite has customers in the US, EU, UK, and LATAM. Building a predictive analytics model that works at scale and serving these customers is a huge milestone for the company. Further, Cyberwrite is building the next generation engine which will be launched during 2019. This will enable the customers to proactively reduce their risks across their portfolio of clients and vendors based on a proprietary recommendation engine.
Insights into the Future
As cyber threats continue to develop, the cyber insurance market is predicted to become more dynamic. Nir believes that both cyber insurance and vendor risk management are huge opportunities. He emphasized on the forecasts made by Allianz SE which estimates that the cyber insurance market is expected to grow by double-digit figures year-on-year, and could reach over $20 billion in annual premiums in the next 10 years. Moreover, Gartner forecasts that cybersecurity ratings will become as important as credit ratings when assessing the risk of existing and new business relationships by 2022.