Jason Crabtree, QOMPLX CEO and co-founder, wrote ‘The market must adopt a risk-based approach to cyber’ for Insurance Day.
Cyber telematics utilizes real-time data sources to provide, “a continuous map of an environment with annotation of potential potholes and pitfalls that lie along the route.” The ‘real-time’ element allows detection of events as they are happening…a critical tool when facing a threat actor.
“For underwriters and modellers, cyber telematics offers a quantitative risk-based approach for assessing cyber risk, enabling accurate risk pricing and aggregate management. While still in its infancy, such a data-driven approach is essential to the future development of the affirmative cyber insurance market as it scales and as IT dependence affects other lines of business,” writes Crabtree.
It will take the coordination of both buyers and sellers to bring about a new age of data-driven risk management, but the change is essential for the cyber insurance market to reach its full potential and for there to be a clear path to ground truth.