CyberCube Advances Portfolio Manager with New Features
CyberCube Updates Portfolio Manager to Enhance Cyber Risk Modeling
CyberCube, a leading provider of cyber risk analytics for the insurance industry, has updated its Portfolio Manager. This update focuses on deepening the modeling of cloud outage and mass malware scenarios, and it continues to support the modeling of international cyber exposures.
The Portfolio Manager is widely used by insurers, reinsurers, and brokers, including Trium Cyber, an authorized service company for Syndicate 1322 at Lloyd's. Trium Cyber, which is the first Lloyd's-approved mono-line Cyber syndicate, provides coverage to US-domiciled risks. They are utilizing CyberCube's cyber risk analytics platform, Portfolio Manager, in conjunction with CyberConnect API product.
The updated Portfolio Manager takes into account differences in the origin and spread patterns of global ransomware and wiper malware attacks. It also evaluates how protective measures can reduce the impact of large-scale events. In addition, the updated version allows insurers to stress test their portfolios against a range of systemic cyber-related scenarios. Geographic variation in cloud service provider outages is explicitly factored in CyberCube's Portfolio Manager.
Mitigation is now a key consideration in CyberCube's modeling of cyber catastrophe risk. This emphasis on mitigation continues in the updated Portfolio Manager, which continues to be used for modeling cyber risk in the insurance industry.
The global cyber insurance market is currently robust and growing rapidly. According to recent reports, it is expected to be worth around $16.54 billion in 2025 and more than double to $32.19 billion by 2030, expanding at a compound annual growth rate (CAGR) of approximately 14.2%. This growth is driven by an increasingly volatile cyber threat landscape, including frequent ransomware and data breach incidents, as well as heightened regulatory pressures globally.
In terms of market dynamics, the environment is stable with strong demand and sufficient capital availability from traditional reinsurers and alternative capital providers, such as insurance-linked securities (ILS). Profitability is maintained despite competitive pressures. Notably, improvements in cybersecurity among insureds have helped reduce vulnerabilities, supporting better insurer results.
Artificial intelligence (AI) plays a central role in enhancing underwriting and risk selection processes by evaluating real-time data, thereby improving pricing accuracy and operational efficiency. Predictive AI technologies enable insurers to better assess exposures and craft smarter products with built-in risk assessment, threat intelligence, and incident response capabilities. Collaboration with cybersecurity vendors for data and risk analytics (e.g., BitSight, SecurityScorecard) further refines insurer underwriting and client risk management.
Despite these advancements, cyber risk remains complex due to systemic risks posed by interconnected digital systems and evolving threat vectors such as ransomware, business email compromise (BEC), and funds transfer fraud (FTF). However, the insurance industry shows resilience, with observed reductions in ransomware claim payouts and improved preparedness among insureds.
In summary, the cyber insurance market is evolving towards more sophisticated, data-driven, and AI-enhanced underwriting while navigating growing cyber risk challenges and regulatory landscapes across regions. The updates to CyberCube's Portfolio Manager reflect this trend, providing insurers with powerful tools to manage and mitigate cyber risks in an increasingly complex landscape.
References:
[1] CyberCube Analytics. (2021). Cyber Market Update: Q3 2021. Retrieved from https://www.cybercubeanalytics.com/cyber-market-update-q3-2021/
[2] Willis Towers Watson. (2021). Cyber Risk Market Update: Q3 2021. Retrieved from https://www.willistowerswatson.com/en/insights/2021/09/cyber-risk-market-update-q3-2021
[3] Aon. (2021). Cyber Risk Market Update: Q3 2021. Retrieved from https://www.aon.com/cyber-risk-market-update-q3-2021/
[4] CyberCube Analytics. (2021). Cyber Market Update: H1 2021. Retrieved from https://www.cybercubeanalytics.com/cyber-market-update-h1-2021/
- The updated Portfolio Manager by CyberCube now evaluates how technology-driven protective measures can reduce the impact of large-scale cybersecurity events, such as data breaches and ransomware attacks.
- Trium Cyber, a Lloyd's-approved mono-line Cyber syndicate, uses CyberCube's cyber risk analytics platform, Portfolio Manager, in conjunction with CyberConnect API product to provide coverage for US-domiciled cyber risk, considering differences in the global spread patterns of ransomware and wiper malware attacks.
- The inclusion of predictive AI technologies in the underwriting and risk selection processes of insurers allows for smarter products with built-in risk assessment, threat intelligence, and incident response capabilities, aiding in managing and mitigating cyber risks in data-and-cloud-computing environments.
