“Built on Coalition’s proprietary data collection platform and knowledge graph, which captures 48 trillion monthly events, the Active Cyber Risk Model offers a more accurate picture of cyber risk for organizations and the broader economy. In a simulation modeled against a sampling of 5,000 American companies, Coalition found that a one-in-250-year cyber event could cost more than $370 million in losses. When extrapolated across the entire U.S. economy, a catastrophic cyber event could cost an estimated $29.8 billion in total losses.”
Shawn Ram, Coalition’s Head of Insurance, made an interesting comment on cyber risk data: “More data exists on cyber than any other risk. Using the right tools and systems to measure this risk can dramatically reduce potential impact.”
While there be huge amounts of data, turning it into actionable underwriting information provides the devil in the details. Which appears to be why Coalition is building such complex models.
Coalition’s Active Cyber Risk Model demonstrates cyber is insurable and simulates aggregate risk for 5,000 companies to extrapolate potential losses.
Source: Coalition Releases New Method for Modeling Aggregate Cyber Risk