Corax Launches Advanced Risk Analytics Platform for Cyber Insurance
22 April, 2017: London and San Francisco: Specialist cyber insurance software vendor Corax has announced the launch of its Advanced Risk Analytics platform, designed to help the insurance industry sell more cyber insurance.
Corax was founded in San Francisco and London by cyber industry veterans Jonathan Pope and Tom Beale. The new platform uses a standardized approach across standardized models, with different features and language for broker, carrier or reinsurer users. All of these users can price and see the same risk across a common platform.
“Previous generations of cyber risk analytics focused mainly on carriers and underwriting: but when it comes down to it, regardless of whether you’re a carrier or a broker, everyone involved in risk transfer wants to understand one thing: what’s the cost?” says Jonathan Pope, Corax CEO. “While other cyber risk analytics products fit into specific categories like individual risk rating or portfolio modelling, Corax offers a more holistic approach, where users can add data and individual risk rating and also run sophisticated modelling. With individual risk rating and portfolio modelling completely joined up, it’s a platform for everybody.”
Corax is the only platform on the market that gives users the ability to adjust inputs that drive risk based upon the system’s models, delivering a unique view of that risk. With individual risk ultimately changing inputs at the portfolio level, Corax produces individual Exceedance Probability curves loss intrinsically tied to entire portfolios, providing a consistent end to end view of risk across a business.
News of the product launch follows the company’s announcement that former Hiscox Head of Cyber, Marcus Breese, has joined Corax as Head of Insurance Innovation and Strategy.
“Cyber is getting bigger, and we’re seeing a new generation of products emerge to capitalize on the opportunity,” says Breese. “While there are products on the market that take a deterministic approach starting from the top down by looking at an industry and making assumptions, Corax is the only platform that delivers a probabilistic view by building profiles of individual risks from a ground up perspective to understand what the overall exposures are. It’s a completely new approach to the previous generation of analytics.”
Corax uses machine learning and our proprietary probabilistic and quantification modelling engine to calculate metrics such as cyber hygiene, frequency of breach and business interruption and potential average loss.
“Previous generations of cyber insurance software were definitely about the quantification of cyber risk, but that was mainly focused on breach,” says Pope. “Because of notable business interruption events over the past 18 months, quantifying business interruption as well as breach has been brought to prominence, and there’s a new requirement for modeling to the nth degree because companies and their entire ecosystems are so interconnected. Corax is meeting requirements for this sophisticated level of modeling in terms of understanding all sources of business interruption and quantifying them beyond breach.”