AXA’s P&C and specialty risk division, AXA XL, has forged a strategic partnership with the data science-driven cyber management MGA, Intangic.
Headquartered in London, Intangic MGA offers dynamic and disruptive cyber insurance cover for large businesses based in the UK and has launched the industry’s first parametric policy, called CyFi, which provides fast recovery for public corporations impacted by cyber threats.
The aim is to demystify cyber help risk managers to improve the overall effectiveness of their cyber insurance programmes, and provide timely payouts.
According to reports, the MGA is led by an expert executive team that specialise in insurance, data science, financial markets, and cyber security. They are able to provide a new and innovative model for the global cyber insurance market.
The partnership with AXA XL is particularly advantageous because Intangic MGA benefits from AXA XL’s cyber policy, CyFi which is currently underwritten by AXA XL Insurance Company UK Ltd.
New parametric cyber insurance opportunities from AXA
The Intangic policy offers cover of up to £12.5 million in the UK market, with plans to extend this to the US market in the near future.
CyFi was designed to address the problem of constant cyber threats as early as possible to lower the probability of customers suffering significant losses from attacks.
The solution has two simple triggers: the level of malicious activity targeting a company and a subsequent loss in value. This unique feature ensures that all parties have a transparent dashboard for real-time monitoring of risk activity, which is a first for an underwriter in the cyber insurance market.
Once both triggers have been met, the claim will be paid promptly to help the business run efficiently again.
New cyber insurance offerings essential
Intangic’s research also shows that companies struggling to manage the financial impact of cyber-attacks have a 250% higher probability of suffering material losses compared to their peers with better cyber-attack management.
Speaking about the new partnership and resulting cyber insurance offering, Ryan Dodd, Chief Executive Officer and Founder of Intangic, explained: “It really just comes down to thinking differently about the problem. The security teams at large corporations have to manage cyber threats all day, every day. Our approach assesses cyber as a high-frequency risk. By accepting cyber attacks as ‘constant’, we can measure a link between how these attacks are managed and the financial impact they have on corporate operations.
He continued: “Our parametric triggers make this link visible, enabling fast recovery from covered material breaches and giving corporations a new type of insurance risk transfer. By doing this, we have converted cyber risk to a language the board understands.”
Luis Prato, Chief Underwriting Officer, UK & Lloyd’s at AXA XL said the partnership provides a simple and innovative solution to a complex problem. “Intangic’s policy and the mechanisms behind it create a different way to approach risk and unlock capacity for cyber for large public corporations, helping them to strengthen their cyber risk programme.”
Dodd added: “We brought multiple areas of risk expertise together to think about cyber differently and, through data science, we have converted what is considered an invisible risk into something more measurable and – ultimately visible – to large corporations.”
