Although having a limited direct impact on captives, the recent CrowdStrike incident will likely lead to more companies assessing the possibility of utilising their captives to write cyber risk.

Trillions of dollars spent every year on digital transformation has resulted in large corporate IT networks becoming ever more complex.  Meanwhile, attackers in pursuit of financial gain are constantly evolving tactics, techniques, and procedures to get around security controls to gain access to these networks and steal data. Cyber is a human behavioral risk and as a result, it’s dynamic. Controls that worked on attackers yesterday may not work today. Despite increased risks, digital transformation will remain a business imperative. But companies are losing visibility of their own IT environments and conventional approaches to managing the risk are proving insufficient.

Intangic, a US-domiciled technology risk platform, has appointed Joshua Cryer as Director of Client Solutions.

In last week’s CyFi™ note, we covered an overlooked issue in cyber: economic losses. What’s the point in taking stock of these events and the actual and potential losses? It’s important to understand the nature of this gap to then focus on creating better solutions to address it.  This is a central topic in the forthcoming October edition of our monthly research note, The Intangibles.

Ryan Dodd, CEO and founder of Intangic, shares how his company is transforming the way cyber risk is assessed and managed. With a dynamic, market-based approach, Intangic provides large enterprises with real-time insights into cyber threats and risk, helping them protect themselves more effectively than traditional methods allow.

Two recent business interruption (BI) breaches involving US-listed Microchip Technology and US oil and gas services firm Halliburton are not generating the same headlines as the CrowdStrike-related disruptions or even the large-scale breach involving Change Healthcare. But BI incidents like this are causing economic losses for shareholders, and it’s becoming so common that the press barely picks up on it.

MGA Intangic is in its second year, backed by AXA XL, and provides a pre-emptive approach to underwriting cyber risks.

Though the response and resilience of the cyber market is important, what is more critical is how risk teams proactively deploy resources to avoid large BI losses in future.

At first glance, the property and cyber markets don’t have much in common, with the property’s scale of losses in the last year of $123 million far exceeding those of cyber. But there are some parallels that can help risk officers present a cohesive risk management strategy to the C-suite and board across both risks with the common objectives of more efficient risk financing and avoiding losses.

Security controls alone, even when well managed, are not enough to protect a company from cyber criminals.  Seeing the threat from the cyber attacker’s point of view is key to bolstering risk prevention efforts before the large breach. It’s no different than how we approach sports matches.

In 2023, direct written premium in the US rose by only 0.1% according to recent numbers reported by AM Best. Intangic explores how a deceleration in the speed of cyber market expansion points to the need for a new approach.

Recent supply chain-related breaches highlight need for a more proactive approach to managing the risk

The questions we hear from risk managers at large companies with captives are: “Do we have enough of the right cover? Are the captive premiums too high? How can we consistently validate our risk posture? What are the best metrics to report to CEO and Board?”

Changing demands and expectations among large corporate buyers of cyber insurance are driving carriers to compete for market share at a macro level while also addressing concerns around aggregate risk, according to Intangic MGA CEO Ryan Dodd.

The sheer volume of cyber-attacks taking place without corporations knowing lends itself to understanding cyber as a high frequency, low severity risk, thus opening the door for more captive involvement, according to Ryan Dodd, CEO and founder of Intangic.