Kathmandu. Cyber insurance companies have been shown to be able to better predict the number of claims using digital footprint data along with traditional underwriting factors (such as income, industry and country).
A study conducted by Gallagher Re shows this. Externally visible data can provide insurance companies with a better understanding of an institution’s digital exposure and use external technical information to evaluate the relationship between companies that look similar based on traditional pharmaographic information, according to the study.
The results of the study showed that digital footprint data had insightful potential and could provide insurance companies with additional ways to assess cyber risk. External digital complexity measures, including Internet Service Provider (ISP) diversity and related indicators, provided further insights into revenue, industry, and beyond the country.
The study found that organizations with similar traditional characteristics may have different digital footprints. This makes external digital data a potentially useful complementary tool for cyber underwriting and risk selection.
According to Gallagher Rica, the results of the study suggest that understanding the size and nature of an organization’s external digital presence can help insurance companies better distinguish risks and evaluate the potential for future cyber claims. – Agency
