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Market leader in cyber risk analytics and quantification achieves high double-digit revenue growth and breaks ground in new markets
31 January 2024, SAN FRANCISCO — CyberCube, the market leader of cyber risk analytics for the insurance industry, marked the end of a positive year of strong growth, surpassing 100 insurance organizations licensing CyberCube solutions.
As the cyber insurance market grows in size and sophistication, analyzing, assessing, and quantifying the impact of cyber events is becoming central to the global insurance industry. Today, CyberCube’s analytics are used by 75% of the top 40 US and European cyber insurance carriers (by gross written premiums) to drive decision-making, manage risk, and build cyber resilience.
A remarkable year of growth in 2023
- CyberCube partnered with over 100 clients across the entire insurance value chain. Alongside previously announced clients such as Chubb, Beazley, Munich Re, Gallagher Re, Aon, Guy Carpenter, Howden and Lockton, CyberCube publicly announced broader relationships in 2023 with Aviva, Ariel Re and Fermat Capital Management. CyberCube’s analytics are now used by 11 of the top 20 global insurance brokers, and 17 of the top 20 US cyber insurers by premium. Among the top 20 European cyber insurance carriers, 13 use CyberCube products.
- Continued product development resulted in high double-digit ARR growth across CyberCube’s suite of advanced cyber risk analytics and quantification products, making it the pre-eminent provider of cyber risk analytics. In 2023, CyberCube launched Version 5.0 of Portfolio Manager, a scenario-based catastrophe model that empowers portfolio-level insights for senior leadership decision-making. Account Manager, which gives insurance underwriters a unique view of each risk they assess, with actionable insights, saw ARR double as it invested in distinctive marginal risk analysis and improved signal and score efficacy. Broking Manager, which enables intermediaries to advise their clients better on risk transfer, saw the release of Prep Module Version 1.0. Single Point of Failure (SPoF) Intelligence (a tool that empowers (re)insurers to understand and manage technology dependencies within organizations and across portfolios), demonstrated 80% year-on-year ARR growth.
- CyberConnect, an API offering, more than doubled its revenue, with increasing numbers of clients opting to integrate CyberCube’s data into their workflows for fully automated analytics for the long-term. CyberCube announced strategic partnerships with digital platforms Cytora and Millennial Shift Technologies Inc. to automate the delivery of cyber insurance analytics and provide a more streamlined and informed understanding of cyber risk. These relationships add to existing partnerships with Duck Creek Technologies, EXL, and CyberAcuView.
- The market recognized CyberCube with numerous industry awards for product innovation, company reputation, employee satisfaction, and overall growth. In addition to winning accolades including the Inside P&C Awards, Axco Global Insurance Awards, and four InsuranceERM awards, workplace initiatives were acknowledged by Forbes recognizing CyberCube as one of America’s Best Startup Employers 2023 – ranked #11 after evaluating 2,600 businesses. Insurance Business UK also recognized CyberCube for having a 5-Star DE&I program. CB Insights listed CyberCube on “Insurtech 50: The most promising insurtech startups of 2023” and InsurTech Magazine featured CyberCube as one of the “Top 10 cyber insurance startups and insurtechs”.
- CyberCube informed the broader insurance community of emergent risks, potential coverage issues and trends impacting the industry, including nation-state activity and the economy’s resilience to cyber events. In addition to issuing briefings in response to events such as the VMware ransomware campaign and MOVEit attacks, CyberCube partnered closely with the International Underwriting Association, the Geneva Association, and the International Association of Insurance Supervisors to produce critical guidance on key issues facing the (re)insurance market. Issues covered included supply chain risk, emerging threat actor capabilities, and modeling systemic risk at a societal level to support the public sector in managing catastrophic cyber risk.
- CyberCube took a leadership role in building societal resilience to systemic risk, providing key cyber risk quantification and modeling as the public sector continues to collaborate with the cyber insurance market. In November, CEO Pascal Millaire facilitated a session at the Catastrophic Cyber Risk and a Potential Federal Insurance Response Conference, hosted by NYU Stern’s Volatility & Risk Institute and the US Department of the Treasury’s Federal Insurance Office.
Expanding into new markets
In 2023, CyberCube also played a pivotal role in attracting new sources of capital to manage systemic cyber risk by providing sufficiently robust modeling to transact cyber risk outside the insurance industry. Working with the capital markets, CyberCube supported the placement of a couple of firsts for the Insurance-Linked Securities segment – the first private and the first 144A cyber catastrophe (“cyber cat”) bonds in 2023, as well as the first index 144a. All cyber cat bonds issued in 2023 utilized CyberCube’s model, marking an expansion into CyberCube serving the financial sector. CyberCube is also assisting other sectors, including the public sector, to build societal resilience to systemic cyber risk.
CyberCube was incubated within Symantec in 2015 and launched as an independent, venture-backed business in January 2018. It now employs more than 120 people worldwide. CyberCube has raised over $100m from highly respected investors, including Forgepoint Capital, HSCM Bermuda, MTech Capital, Morgan Stanley Tactical Value, individuals from Stone Point Capital and Scott G. Stephenson, Founder of SGS Capital and former Chairman, President and CEO of Verisk Analytics.
Pascal Millaire, CyberCube’s CEO, said: “From our inception, CyberCube’s goal has been to become the pre-eminent cyber data and analytics partner to the insurance industry. Our progress in 2023 is cementing our leadership position with our insurance partners, and we are just getting started. Cyber has the potential to become one of the largest lines of P&C insurance globally. We are committed to driving excellence in our analytics that enables CyberCube insurance clients to deliver sustainable, profitable growth for decades to come.
“CyberCube’s analytics are creating actionable insights for other sectors of the economy, including unlocking capital to drive innovation, translating cyber risk into financial impact for organizations, and enabling societal resilience to systemic cyber risk. We continue to work with key public and private sector organizations to drive decision-making on cyber peril topics.”
CyberCube delivers the world’s leading cyber risk analytics for the insurance industry. With best-in-class data access and advanced multi-disciplinary analytics, the company’s cloud-based platform helps insurance organizations quantify cyber risk to facilitate placing insurance, underwriting cyber risk and managing cyber risk aggregation. CyberCube’s enterprise intelligence layer provides insights on millions of companies globally and includes modeling on thousands of points of technology failure.
The CyberCube platform was established in 2015 within Symantec and now operates as a standalone company exclusively focused on the insurance industry, with access to an unparalleled ecosystem of data partners. It is backed by Forgepoint Capital, HSCM Bermuda, MTech Capital, Morgan Stanley Tactical Value, individuals from Stone Point Capital and Scott G. Stephenson. For more information, please visit www.cybcube.com or email [email protected].
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