Strength in numbers: New member adds to the power of the Verisk Cyber Data ExchangeBy Eduard Alpin | July 14, 2020
The law of large numbers is one of the statistical underpinnings of all insurance operations. Simply stated, the law posits that the more data you amass, the more confident you can be in your projections of future outcomes.
Yet in the still-nascent world of cyber insurance, many insurers simply lack the broad-based, credible, and relevant data assets that undergird strategic planning, portfolio management, and product development. It’s not that this data doesn’t exist, it’s just that it’s been decentralized and dispersed among individual companies and stakeholders, robbing it of much of its potential for predictive power. Rather than access a more complete picture of the cyber risk environment, many insurers and market participants are forced to peer through the data equivalent of a keyhole.
The Verisk Cyber Data Exchange was built to help stakeholders access the wider view, with all the predictive benefits that data can bestow. It’s the industry’s chief source of contributory aggregated cyber insurance data—and it’s growing larger and more powerful through the recent addition of a new member.
Recognizing the pressing need for a centralized source of critical cyber business intelligence, companies are joining and contributing to the Cyber Data Exchange to help sharpen their insights into the growing market for cyber coverages. To date, the Cyber Data Exchange contains significant assets including:
- 1 million transactions
- Over 100,000 policies
- Over $300 million in premium
- Over 1,000 claims
Exchange participants can access these and other data points through interactive dashboards. More importantly, the Cyber Data Exchange provides the critical mass of data needed to help insurers, MGAs, and other market participants leverage the key insights that are only available when viewing a broad cross section of cyber market data.
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