Catastrophe Risk Modelling Solution of the Year, CyberCube
Understanding the risk presented by a natural catastrophe like an earthquake or a hurricane has become a very familiar task for insurers. But in the last few years a new challenge has emerged: understanding the exposure to a large-scale cyber attack or the failure of digital infrastructure.
There is great potential for cyber risk accumulation within insurance portfolios for property and casualty (P&C) risks, and regulators are putting pressure on firms to understand how their contracts could behave following a catastrophic cyber event.
CyberCube is a risk analytics firm that delivers software-as-a-service for cyber aggregation modelling and individual risk underwriting. The firm developed its Portfolio Manager, a scenario-based model, to run "what-if" analyses to assess risk exposure across classes and determine appropriate action.
The company's multi-line approach enables a broader view across the spectrum of P&C risks, including aviation, marine, product liability, offshore energy, and kidnap and ransom.
A key area of focus is multi-line accumulation, as a systemic cyber event might result in losses, for example, under both directors and officers and product liability covers.
InsuranceERM's judges understood the importance of the challenge, and acknowledged how CyberCube would be a great help to insurers in understanding accumulation and potential clash.
Since its launch in January 2018, some of the world's largest re/insurers have agreed to work with CyberCube including Chubb, CNA, Munich Re and Hiscox.
The success of its offering has been reflected in the support from investors. In November 2019, CyberCube raised $35m in a series B funding round led by re/insurance sector investor Hudson Structured Capital Management Bermuda and ForgePoint Capital.
CyberCube intends to use the funding to expand its platform and target new clients in regional and national insurance institutions.