And now, some serious metaphor mixing… If you’ve been following the evolution of #cyber insurance industry, you’ll probably feel that it could definitely use more cowbell. The troubled sector needs more of that je ne sais quoi, though I really don’t know what—more cowbell, some more oomph that will make cyber policies a better deal for both insurance carriers and policy holders. The insurance industry has a cyber fever, and only more cowbell can cure it. More cowbell can also make cyber insurance a more practical product for brokers to sell and support.
To these ends, Cowbell Cyber, has launched an AI-powered, continuous cyber insurance underwriting platform for small to mid-sized enterprises. The company is also planning to offer its own cyber insurance policies through its platform. It’s a tech company and an insurance broker. It’s like Certz, two breath mints in one. (What? I can’t engage in TV nostalgia too?)
Seriously, though, Cowbell is taking on an important challenge that’s affecting virtually every business and public sector organization on the planet. Cyber insurance is likely to play a critical role in shaping cyber security policies and practices in the coming years. The cyber insurance market is growing, driven by major breaches. Research suggests the category will reach $14B globally by 2022. There’s a problem however. A pronounced lack of observability into the real risk profile of cyber insurance has challenged insurance distribution, underwriting, and claims.
In the first platform of its kind, Cowbell Cyber aligns insurable threats to risk exposures to identify cyber risks and proactively mitigate losses in the aftermath of cyberattacks. The technology uses an “inside-out” approach to offer ongoing, dynamic, automated, insurable cyber risk assessments. It provides customers with real-time insights into insurable risks.
The company has secured $3.3M in seed funding from leading insurance, cybersecurity and artificial intelligence venture funds. These include ManchesterStory Group, Holmes Murphy & Associates, Tri-Valley Ventures and the Global Insurance Accelerator. This investment will help accelerate the go-to-market and development of its continuous risk assessment, underwriting, and comprehensive cyber liability insurance platform.
Cowbell Cyber was founded by several of the leading minds in cybersecurity, insurance, and engineering. Their flagship continuous risk-ratings factor, Cowbell Factor™, enables customized protection and recommendations to provide a policy that matches the customers’ needs as they evolve. Coverage is specifically designed for cyber risk exposure—not entwined with other lines of coverage.
“With the increasing magnitude and frequency of cyber attacks, organizations not only need to focus on prevention and detection but also on managing risk mitigation in the aftermath of attacks,” said Jack Kudale, founder and CEO, Cowbell Cyber. “Cowbell Cyber has demystified enterprise-specific insurance coverage through the development of an early warning system that enables companies to gain complete insight into risk exposure and take control of loss mitigation while increasing insurability.”
Cowbell Cyber also plans to make its cyber insurance policy, Cowbell Prime™, available in the State of California for businesses up to $250M via a retail broker distribution channel during the first quarter of 2020. Dan Keough, Chairman & CEO of Holmes Murphy, the insurance brokerage, said, “We are looking forward to investing in and working with Cowbell Cyber as they enter the market with this cutting-edge technology.” He added, “Our No. 1 priority has always been our clients and ensuring they’re protected. This is especially relevant more than ever with the evolution of cyber risks impacting our clients. As we look to the future of technology and innovation within the industry, we believe Cowbell Cyber will be a thought leader in this specialized area of risk and we’re happy to invest in their efforts.”