Lloyd’s has made a strategic investment in cyber technology firm BreachBits through its central innovation fund. This marks the third investment from Lloyd’s Lab alumni, following BreachBits’ participation in the accelerator’s 13th cohort. BreachBits, founded by former US cyber warfare professionals, developed two automated tools aimed at enhancing cyber insurance efficiency. Lloyd’s market participants helped design the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention tools.
The company’s backend, BreachRisk a.i., has performed more than 50,000 hacker simulations since 2020. It replicates 95% of attacker pathways listed in the 2024 Verizon DBIR.
Cyber Insurance Underwriting
During pilot testing in the Lloyd’s Lab, the tools showed promise. The Validator helped reduce cyber insurance underwriting time. The Pre-Claim tool aided in proactive incident management.
Lloyd’s Head of Innovation Rosie Denée said, “BreachBits is revolutionising cyber risk assessment by providing insurers with visibility into their clients’ security posture.” She noted the Lab experience helped move the product from concept to market readiness. “We’re proud to support their continued growth through this investment – strengthening data-driven cyber solutions that enable our market to underwrite with greater confidence and precision,” she said.
J. Foster Davis, BreachBits co-founder, said, “We’re honored by Lloyd’s investment and proud to help with real-world cyber insurance challenges….Our team is committed to addressing real-world challenges in cyber insurance and risk management.”
Global Cyber Insurance Market
Analysts project the global cyber insurance market will grow from $15 billion to $55 billion. Lloyd’s expects BreachBits’ technology to help syndicates and brokers underwrite cyber risk more efficiently.
This investment reflects Lloyd’s strategy to adopt data-driven tools. It also supports faster policy issuance, improved risk selection, and added policyholder value.
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