The system scores companies on the degree to which a cyber attack may affect their business and the potential costs involved. It compares the company’s risk of having a breach to the safeguards it has in place.
Tracy Grella, AIG’s Global Head of Cyber Risk Insurance, in an interview said, “AIG’s underwriters have been using the computerized analysis since November, which combines information from a new insurance application designed for the process and data about current cyber threats to generate scores on various related factors.”
With mounting cyber threat to businesses, this system hopes to provide a way to measure the risk involved in a business so that cyber coverage in insurance may be taken into consideration.
This comes after AIG in October said that they will review all coverage types to check for cyber risk and give insurers a clear picture about cyber coverage and estimated financial exposure. They will also create a cyber-risk report for the customers with the analysis scores for understanding and comparing.
Along with this, AIG also announced their partnership with cybersecurity companies CrowdStrike Inc and Darktrace, on Tuesday, to launch CyberMatics, a service that verifies information AIG receives from customers’ cybersecurity tools.
Darktrace Chief Executive, Nicole Eagan, said, “The service uses artificial intelligence, or the ability of machines to carry out tasks normally associated with human intelligence, to look inside an insured company’s network for strengths and vulnerabilities.”
Tracy Grella said that while companies are not required to use the service, those who do may be able to negotiate more favourable policy terms.