Cyber Insurance Policy Meets Predictive Analytics
Cyber insurers face surging claims and evolving attack patterns. SecurityScorecard’s Breach Susceptibility Indicator (BSI) offers a precise way to measure cyber risk for every cyber insurance policy. The BSI quantifies breach likelihood using verified historical data, enabling insurers to forecast losses more effectively.
A Data-Driven Metric for Risk Evaluation
The BSI uses a model trained on data from over 10,000 cyber insurance policies and six years of cybersecurity breach incidents. It evaluates a company’s inherent exposure based on its digital footprint and security posture. Unlike traditional scores, it provides a clear, numeric indicator ranging from “Very Low” to “Very High.”
Backed by Industry Validation
SecurityScorecard collaborated with Marsh McLennan’s Cyber Risk Intelligence Center (CRIC) to validate the BSI’s predictive accuracy. The CRIC tested the model across 8,000 organizations and 12,000 policies. Results showed a direct link: higher BSI scores aligned with higher breach claim rates.
Applications for Underwriting and Risk Management
Insurers can apply the BSI to enhance underwriting precision and guide cyber insurance policy pricing. Enterprises can also use it to assess third-party vendor risks through BSI insights. The model’s API allows seamless integration for automated analysis.
Looking Ahead
SecurityScorecard plans periodic model updates to improve predictive strength. Future iterations may include targeted cybersecurity improvement plans for insurers and enterprises. The BSI marks a shift toward data-backed, proactive cyber risk management.
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