RELEVANT - CURRENT - ACTIONABLE

Challenges of Cyber Insurance

Cyber insurance policies carry substantial risks for insurers, particularly when dealing with clients whose cyber defense posture is not well understood or clearly documented. The challenge of conducting precise risk assessments can complicate matters. Nevertheless, the importance of these assessments cannot be underestimated, as they are crucial for maintaining both the financial health of the insurance company and the integrity of their insurance products.

Evaluate and Track Cyber Risks to Mitigate Insurance Portfolio Vulnerability

Utilizing cyber threat intelligence and internet telemetry analytics during the preliminary evaluation of an application for cyber insurance enables insurance carriers to thoroughly understand the cybersecurity posture of potential clients before binding the policy. This proactive and non-invasive strategy ensures that only applicants with no externally observable cyber threats — a strong indicator of solid cybersecurity posture — are considered for insurance coverage, substantially reducing the potential for future claims. This approach not only mitigates risk for insurers but also actively aids clients in strengthening their cybersecurity defenses.

When insurers employ this method, they gain the ability to pinpoint potential vulnerabilities during the vetting process. This insight allows them to offer targeted recommendations for improving security protocols, which must be implemented before the formalization of the policy. As a result, this refined risk assessment process not only protects the financial interests of the insurance providers but also promotes a higher standard of cybersecurity across their client base. By fostering this environment of proactive security enhancement, insurers contribute significantly to the overall fortification of their policy holders’ digital infrastructures, acting as a true partner.

The RedSense Approach

RedSense employs a 3-phase approach to reducing a cyber insurance carrier’s potential underwriting loss:

RedSense provides the automatic discovery of a company’s external internet infrastucture and delivers a detailed technical assessment of relevant cyber threats, both active and potential.`The analysis encompasses all of RedSense’s threat vector information encompassing victim space, adversary space, compromised credentials and internet telemetry, producing a thorough report describing an applicant’s current obvservable threat posture.

If an applicant is approved for a cyber insurance policy, that entity is monitored continuously for changes to its defense posture and emerging threats. Serious changes are alerted to the insurance carrier for follow-up and remediation to reduce the chance of a policy claim.

And finally, a complete deep re-vetting and reporting occurs when a policy is up for renewal.