Insurtech and Cybersecurity Underwriting

The underwriting of cybersecurity insurance policies has long been a challenge. That seems to be changing. At-Bay, a new entrant to the cyber insurance space working out of Mountain View, California and Tel Aviv, promises to harness new technology to improve the process and help insureds better control their cyber risks.

At-Bay, which launched this week, is a managing general underwriter (MGU) looking to fight cybersecurity exposure with technological expertise. Rather than looking at historical data in furtherance of its underwriting process, At-Bay uses software to proactively assess a prospective insured’s cybersecurity weaknesses, similar to the way a hacker might probe a target’s defenses before an attack. At-Bay hopes this approach will provide more accurate underwriting, and, as a byproduct, will help prospective insureds improve their cybersecurity. The start-up has partnered with Hartford Steam Boiler Inspection and Insurance Company, which will furnish the actual cybersecurity coverage.

Although the At-Bay model has yet to be proven, the company is betting that the combination of insurance and IT expertise can add up to a successful business. Whatever the result, At-Bay’s innovative model is another example of how the application of newer technologies to underwriting is transforming the insurance industry and creating great value for the consumer.

This blog post is not offered as, and should not be relied on as, legal advice. You should consult an attorney for advice in specific situations.