External scanning is, and will remain, a key pillar of most successful cyber reinsurance offerings – but forthcoming solutions could mean broadening carriers’ use of tech and data
Rolling Meadows, IL (May 4, 2023) – In the context of Cyber insurance, technology and data is often used as shorthand to describe the rapid uptake and multifaceted use of external scanning methods by (re)insurers. But data alone doesn’t guarantee success; insurers must be able to translate this access into actionable insights across their business.
In 2022, Gallagher Re built a machine-learning model and combined it with historical claims to better understand which elements of external scanning would have been more predictive of claims at the point of underwriting. Their new Cyber IQ Report presents key insights from the study and outlines anticipated trends with insurers’ uptake of outside-in technology.
Access the full report here.
Executive Summary
Technology and data in the context of cyber insurance are often used as shorthand to describe the rapid uptake and multifaceted use of external scanning methods by (re)insurers.
However, having access to data alone does not guarantee success. Rather, insurers must ensure they can rigorously translate this access into actionable insights across their business. This includes building infrastructure that works for cyber insurance and overcoming hurdles presented by cumbersome legacy systems.
In a 2022 whitepaper, Gallagher Re argued the value of external scanning was clear: arming insurers with the same data attackers use to select and compromise targets. There were also likely applications across an insurance lifecycle.
However, false positives, infrequency of updates, and sheer data volume obfuscate the value in underlying data, as well as differences between vendor methodologies, challenging the reliability of scores. This complexity renders it difficult to amplify findings and translate them into digestible insights for insurers.
Arguably, the greatest limitation has not been outside-in scanning itself, but the uncertainty surrounding its ability to predict cyber claims.
Over the course of 2022, Gallagher Re built a machine learning model and combined this with historical claims to better understand which elements of external scanning data would have been more predictive of claims at the point of underwriting.
This paper presents the key insights from the study into the ability of the data to predict cyber claims, as well as outlining upcoming trends with insurers’ uptake of outside-in technology.
Access the full report
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. The company has operations in 68 countries and offers client service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants. For more information, visit www.ajg.com.
SOURCE: Arthur J. Gallagher & Co.
Tags: Arthur J. Gallagher, Big Data, claims, core systems, cyber attacks, cyber risk, cyber security, data, legacy systems, Machine Learning (ML), outlook / predictions, reinsurance, trends, whitepaper
