This is the first patent to integrate cybersecurity insurance with blockchain technology. It marks an important step forward in CloudCover’s ambition to build an end-to-end cybersecurity technology and insurance platform based on artificial intelligence (AI) and machine learning.
This also allows for the expansion of AI-based network detection technology, which includes automation and orchestration technology, to enhance risk awareness, risk management, and risk transfer. The idea is based on CloudCover’s CC/B1, a completely decentralised risk mitigation technology designed to safeguard the network in real time and enable data insurance.
It is now feasible to include micro-insurance policies into digital transactions that are safeguarded and recorded using blockchain technology. While machine learning, inspecting, and blocking threats inside an organization’s network, the CC/B1 is analysing network data for the purpose of risk scoring and constructing actuarial models – models that are used to establish and reset premiums in real time.
The platform not only allows a firm to transfer the risk of their network’s security on demand, but it also unlocks the company’s data value at risk by using the incremental risk transfer function of the premium. This innovative technology will allow for more accurate underwriting and pricing of cybersecurity insurance inside the $1.2 trillion annual cyber insurance premium ecosystem.
“As we know it, cybersecurity insurance is unsustainable — the cost of cybercrime is rising, more claims are being submitted, and premiums have escalated as a consequence,” says Stephen Cardot, CEO and creator of CloudCover.
“We need historical data in the form of actuarial tables to be proactive in establishing more realistic rates – but the insurance underwriting business says that’s unlikely to happen since the risk is so unpredictable. CloudCover has proven that notion incorrect with this invention – we can identify risk, control it, score it, lay it off, and underwrite it at the granular level – removing the traditional barriers to real-time data insurance and tackling the problem that has long plagued the cybersecurity insurance industry.”
CloudCover is producing a lasting and public record of every micro-policy that is established and closed by employing blockchain technology for this progressive insurance of “data in motion.” Every micro-insurance policy is mechanized on demand, and CloudCover alerts the policyholder and handles the claim automatically. This is a deviation from traditional cybersecurity insurance, in which a policyholder tells their insurance company of a breach proactively.
CloudCover owns the first blockchain-enabled underwriting procedure for incremental CyberSafety Network Data Insurance. This patent will be crucial in the company’s planned insurance coverage products, which started with the introduction of a $1 Million Ransomware Warranty for firms who sign a three-year contract with CloudCover’s CC/B1 Platform.
CloudCover Cyber Liability (CCCL) and Information Systems Business Interruption (ISBI) insurance, with real-time notice coverage, will be available in January 2022, with CloudCover Cybersecurity Network Data Insurance following in the first quarter of 2022. The patent is part of CloudCover’s continuous effort to Reimagine CyberSecurity, which ensures that enterprises are aware of their degree of cyber risk and have taken proactive actions to manage it and transfer it via insurance.