NEA and IVP-backed company measures cyber risk in dollars and probabilities, helping insurance industry tackle multi-billion dollar challenge
SAN FRANCISCO — September 8, 2016 — Cyence, the company that empowers the insurance industry to understand the economic impact of cyber risk, officially launched from stealth today. Bringing together industry-leading experts spanning the very disjointed disciplines of economics/risk modeling and cybersecurity, Cyence has developed the industry’s first economic cyber risk modeling platform, quantifying cyber risk in probabilities and dollars. Cyence’s unique solutions help the insurance industry more effectively manage cyber risk across prospecting and selecting, assessment and pricing, and managing portfolios, exposures and accumulations.
“Cyber risk is both a major opportunity and a challenge for the insurance industry,” said Matthew Mosher, chief operating officer at A.M. Best Rating Services. “On one hand, it is a high-growth new premium opportunity, but simultaneously, it is a peril across many lines of insurance. A.M. Best is happy to be working with Cyence and leveraging their economics and risk modeling perspective on cybersecurity to move the cyber risk discussion onto the critical topics of probabilities and dollars, severity curves and probable maximum loss.”
“Cyber risk is a major concern for our clients. While there has been a focus on risk prevention and mitigation through technology investment, a holistic cyber risk strategy should balance risk mitigation with risk transfer,” said John Drzik, president of Global Risk and Specialties at Marsh, a leading global insurance broker. “We are pleased to collaborate with Cyence and apply their innovative analytics to develop new insurance solutions for a wide segment of clients from small businesses to multinationals.”
“Until now, cyber risk has been defined primarily as a technology problem, but when developing an economic risk model, people and processes are just as important,” said Arvind Parthasarathi, founder and chief executive officer of Cyence. “We are essentially modeling human behavior with technology and leveraging a combination of econometrics and machine learning to build an economic risk model robust enough for the insurance industry to deploy capital against.”
Cyence investors include New Enterprise Associates, IVP and Dowling Capital Partners, spanning Silicon Valley and the insurance industry. To learn more about Cyence, please go here.
Cyence empowers the insurance industry to understand the impact of cyber risk in the context of dollars and probabilities. Cyence’s unique approach combines economic/risk modeling, cybersecurity and big data analytics to create an economic cyber risk modeling platform. Cyence’s platform and analytics are leveraged by leaders across the insurance industry to help understand and manage cyber risk, as well as to roll out new transformative insurance products.
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