The insurance business that hedges cyber risks has a short history, but it is very volatile due to the large number of incidents, which grow year after year, and whose effects are increasingly impactful. These include:
System damage / loss of service.
Data theft / Extortion
Responsibilities / Sanctions
Fraud
Due to the limited historical data, the fee of the policies has been calculated very subjectively and based on a hypothesis that has been surpassed by reality, which led to significant increases in premiums year after year.
And the more risk increases, the higher the premium cost, but the difficulty is to calculate it in a reliable and convenient way for both parties.
The rating delivers value to both parties
For the Insurer
A comprehensive questionnaire that quantifies the level of security. The higher the rating, the lower the risk of an incident.
For the Insured
A higher rating of their services can provide them with a premium reduction.