Gallagher Re report details how analysis of external scanning data can help insurers better predict claims and differentiate among cyber risks.
Cyber insurers can significantly reduce their loss ratios by identifying cyber data and company characteristics that are more predictive of claims, according to a study by Gallagher Re.
The study found that the worst 20% of companies in terms of weak cybersecurity controls were almost seven times more likely to suffer a claim than the best 20%, underscoring the importance of analyzing data that correlates with these profiles in the evolving cyber risk landscape.
Since the early 2010s, cybersecurity firms have been developing technographic data by remotely scanning and assessing companies’ resilience to hacking attacks, amassing large databases of valuable information in the process.
Cyber insurers also have firmographic data on companies, which is company information like revenues or number of employees. The challenge is identifying which data points are most predictive of cyber risk, according to Gallagher Re.
In early 2024, Gallagher…
