The pioneering invention combines cybersecurity insurance with a blockchain recording system – allowing CloudCover to establish cybersecurity underwriting and set incremental risk premiums for network data insurance in real time
CloudCover®, the company behind the patented CC/B1 CyberSafety PlatformTM, today announced the approval of their newest patent application for the invention of a cybersecurity insurance platform that utilizes a blockchain underwritingreal-timeprocess.
“Cybersecurity insurance as we know it is unsustainable – the cost of cybercrime is increasing, more claims are being filed, and premiums have skyrocketed as a result”Tweet this
The patent is the first to combine cybersecurity insurance and blockchain. It represents a significant milestone in CloudCover’s mission: to create an end-to-end cybersecurity technology and insurance platform that uses automated intelligence (AI) and machine learning. This also enables the extension of AI-based network detection which includes automation and orchestration technology to empower risk awareness, risk control, and risk transfer.
Behind the invention is a fully decentralized risk mitigation platform – CloudCover’s CC/B1 – developed to secure the network in real time, so that data insurance is possible. Embedding micro-insurance policies into digital transactions that are secured and recorded utilizing blockchain technology is made possible. While machine learning, inspecting and stopping threats within an organization’s network, the CC/B1 is utilizing algorithms to analyze network traffic for the purpose of risk scoring and building actuarial models – models it uses to set and reset premiums in real time.
The platform not only offers a company the ability to transfer the risk of their network’s security on demand, it also unlocks the company’s data value at risk by leveraging the premium’s incremental risk transfer function. This new invention will make it possible to improve the underwriting accuracy and pricing of cybersecurity insurance within the $1.2 trillion annual cyber insurance premium ecosystem.
“Cybersecurity insurance as we know it is unsustainable – the cost of cybercrime is increasing, more claims are being filed, and premiums have skyrocketed as a result,” says Stephen Cardot, CEO and founder of CloudCover. “To be proactive in setting more accurate premiums, we need historical data in the form of actuarial tables – but according to the insurance underwriting industry, that’s unlikely to happen because the risk is so unpredictable. With this invention, CloudCover has proven that notion is incorrect – we’re able to identify risk, control it, score it, lay it off, and underwrite it at a granular level – removing the conventional barriers to real-time data insurance and solving a problem that has long plagued the cybersecurity insurance industry.”
In utilizing blockchain technology for this incremental insurance of “data in motion,” CloudCover is creating a permanent and public record of every micro-policy that is opened and closed. Each micro-insurance policy is automated on demand, and CloudCover notifies the policyholder and auto-adjudicates the claim. This is a departure from the typical cybersecurity insurance, in which a policyholder reactively alerts their insurance company of a breach.
CloudCover is the owner of the first underwriting process for incremental CyberSafety Network Data Insurance that utilizes blockchain technology. This patent will play a key role in the company’s rollout of its upcoming insurance coverage offerings, which began with the announcement of a $1 Million Ransomware Warranty for organizations that sign on for a three-year contract with CloudCover’s CC/B1 Platform. CloudCover Cyber Liability (CCCL) and Information Systems Business Interruption (ISBI) insurance, which includes real-time notification coverage, will be launched January 2022, with CloudCover Cybersecurity Network Data Insurance to follow in the first quarter of 2022.
The patent is part of CloudCover’s ongoing quest to Reimagine CyberSecurity, ensuring that organizations are aware of their level of cyber risk and have employed proactive steps to control it and transfer their risk through insurance. Organizations are encouraged to engage CloudCover’s CyberSafety Registry® that provides an enterprise compliance impact and governance risk “understanding” that is relevant to regulatory exposures of a company’s business sector, geography, and trade vertical. To learn more about the CC/B1 Platform or to request a demo, visit www.cloudcover.cc/.