LONDON--(BUSINESS WIRE)--Kovrr, a cyber risk modeling company, announced today it has developed an easy to use open framework to measure and understand catastrophic cyber risk exposure. The CRA-Zones™ framework defines the minimal elements needed to provide a view of cyber risk aggregations, allows for analysis across multiple portfolios of risks and allows for monitoring of exposure trends. CRA-Zones™ group cyber risk via a zone based on three elements; geography, industry, and entity size.
CRA-Zones™ were designed by Kovrr during their participation in the fourth cohort of Lloyd’s Lab, the insurance technology accelerator operated by the Lloyd’s of London re/insurance market. The framework has been designed with input from Lloyd’s market syndicates, cyber risk experts and cyber insurance industry professionals, who provided mentoring over the course of a 10-week program.
Laura Johnson, Cyber Practice Head at Chaucer, said "through the process of mentoring Kovrr, we were able to better understand the data and analysis behind this framework. CRA-Zones™ are a valuable tool for understanding and attaining insight for cyber risk exposure."
While traditional catastrophic risk is typically associated with geographic proximity, additional elements must be taken into account to properly assess accumulated cyber risk. Kovrr built this framework after conducting extensive analysis of millions of events which showed a significant correlation between companies from the same location and industry tending to use the same third-party service providers and technologies, leaving them exposed to corresponding cyber attacks. Additionally, the analysis conveyed that entity size has a direct correlation to technologies used, cyber preparedness, security policies, cybersecurity spending, and level of sophistication of cyber attacks.
Trevor Maynard, Head of Innovation at Lloyd’s said – “I’m pleased to see Kovrr offering a new way to monitor cyber accumulations through an open framework. This novel idea is exactly what we hoped for when suggesting cyber as a theme for the Lloyd’s Lab. It goes to show the benefits our market is receiving from bringing exciting InsurTechs such as Kovrr to our innovation accelerator.”
“Kovrr’s goal was to allow all types of risk professionals regardless of their cyber modeling capabilities to use and benefit from the framework”, said Yakir Golan, CEO of Kovrr. “Risk professionals with limited data can gain insights on cyber risk accumulation without having to invest in heavy models and simultaneously insurers already heavily invested in cyber risk modeling gain additional value by attaining alternative views of their accumulated cyber risk.”
Kovrr’s cyber risk modeling platform delivers global (re)insurers transparent, data driven insights into their affirmative and non-affirmative cyber risk exposures. The Kovrr platform is designed to help underwriters, exposure managers and catastrophe modelers understand, financially quantify and manage cyber risk by utilizing AI-powered risk models.
To learn more about Kovrr please visit our website: www.kovrr.com
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Lloyd’s began with a few courageous entrepreneurs in a coffee shop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.
We are a leading specialty (re)insurance group providing clients with proven smart risk solutions for underwriting and claims. Our enterprising and trusted experts offer market leading cross class capabilities, empowered decision-making and a tailored approach. With our headquarters in London, and our international hubs for Europe, MENA, Latin America and Asia, we protect clients in over 200 countries and territories worldwide. We offer clients the flexibility of both Lloyd’s and the company markets. Chaucer Insurance Company is rated A (AM Best) through China Re.
Our dedicated claims team completes our underwriting proposition, epitomising the capabilities required to handle even the most complex incident. We provide a first class claims service and most importantly, pay valid claims promptly. Gracechurch, the sector leading insurance research company and independent authority on London market performance, recognises our claims service as ‘outstanding’.
Our clients also benefit from the support of our parent company, China Re, a leading reinsurer in China, and one of the top 10 reinsurance companies in the world, which maintains excellent security ratings from A.M. Best and Standard & Poor’s. China Re is listed on the Hong Kong stock exchange (1508.HK).
For more information, please visit www.chaucerplc.com