Kovrr Develops Open Framework for Measuring Catastrophic Cyber Risk

July 9, 2020

Kovrr, a cyber risk modeling company, announced it has developed an easy-to-use open framework to measure and understand catastrophic cyber risk exposure.

The CRA-Zones™ framework defines the minimal elements needed to provide a view of cyber risk aggregations, allows for analysis across multiple portfolios of risks and allows for monitoring of exposure trends.

CRA-Zones™ groups cyber risk via a zone based on three elements: geography, industry and entity size.

The framework was designed by Kovrr during its participation in the fourth cohort of Lloyd’s Lab, the insurance technology accelerator operated by Lloyd’s of London. The framework has been designed with input from Lloyd’s market syndicates, cyber risk experts and cyber insurance industry professionals, who provided mentoring over the course of a 10-week program.

While traditional catastrophic risk is typically associated with geographic proximity, additional elements must be taken into account to properly assess accumulated cyber risk, Kovrr explained.

Kovrr said it built this framework after conducting extensive analysis of millions of events which showed a significant correlation between companies from the same location and industry tending to use the same third-party service providers and technologies, leaving them exposed to corresponding cyber attacks.

Additionally, the analysis conveyed that entity size has a direct correlation to technologies used, cyber preparedness, security policies, cybersecurity spending, and level of sophistication of cyber attacks.

Laura Johnson, Cyber Practice head at Lloyd’s insurer Chaucer, described CRA-Zones™ as “a valuable tool for understanding and attaining insight for cyber risk exposure.”

“I’m pleased to see Kovrr offering a new way to monitor cyber accumulations through an open framework. This novel idea is exactly what we hoped for when suggesting cyber as a theme for the Lloyd’s Lab,” said Trevor Maynard, head of Innovation at Lloyd’s. “It goes to show the benefits our market is receiving from bringing exciting insurtechs such as Kovrr to our innovation accelerator.”

“Kovrr’s goal was to allow all types of risk professionals regardless of their cyber modeling capabilities to use and benefit from the framework”, commented Yakir Golan, CEO of Kovrr.

“Risk professionals with limited data can gain insights on cyber risk accumulation without having to invest in heavy models and simultaneously insurers already heavily invested in cyber risk modeling gain additional value by attaining alternative views of their accumulated cyber risk,” Golan added.

About Kovrr

Kovrr’s cyber risk modeling platform aims to deliver transparent, data-driven insights into the affirmative and non-affirmative cyber risk exposures of global re/insurers. The Kovrr platform is designed to help underwriters, exposure managers and catastrophe modelers understand, financially quantify and manage cyber risk by utilizing AI-powered risk models.

Source: Kovrr


Topics Cyber Catastrophe InsurTech Excess Surplus Lloyd's Risk Management

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