Verisk Releases Updated Cyber Risk Modeling Platform
July 22 2020 - 6:11AM
Verisk (Nasdaq:VRSK), a leading data analytics provider, today
announced the latest release of ARC (Analytics of Risk from
Cyber)®, a state-of-the-art cyber risk modeling platform that
informs risk selection, portfolio management, and risk transfer.
This release of ARC hosts a comprehensive set of models powered by
AIR, including individual risk models, aggregation risk models, and
the newly available probabilistic systemic ransomware model, to
help companies analyze systemic ransomware events by simulating
aggregated losses from global-scale ransomware attacks, such as
WannaCry (2017) and NotPetya (2017). The economic loss from a major
systemic ransomware attack can exceed 15 billion USD, causing
significant damage to the global economy, thereby making modeling
such attacks critical to the insurance industry.
“Cyber risk is constantly evolving and growing, especially with
the digital acceleration driven by the COVID-19 pandemic,” said
Prashant Pai, vice president of Verisk Cyber Solutions. “Likewise,
we, as the insurance industry are recognizing that this growing
risk impacts many of the cyber coverages; both affirmative and
non-affirmative. In addition to the unique systemic ransomware
model that is now available in ARC, this release features a number
of innovations including a significantly enhanced web user
interface that provides efficient workflows coupled with a powerful
new financial model that more accurately models insurance terms
specific to cyber.”
Other enhancements in ARC include access to a breadth of loss
breakdowns by a range of event vectors and more than a dozen
coverages; and the ability to automate workflows and integrate
ARC’s analytics into a client’s internal applications by leveraging
public APIs.
The 50,000-year stochastic catalog of systemic ransomware events
includes tens of thousands of events of varying severities. The
model focuses on points of aggregation (including operating system,
geocoded internet infrastructure location, poor cyber hygiene, and
industry), stochastic probability of infection, and downtime
duration to understand the potential spread and severity of these
events. Clients can use ARC to look at the financial impact and
understand potential losses across four key cyber coverages
triggered by these events, including business interruption, data
and asset recovery and remediation, cyber forensics/incident
remediation, and extortion (ransom payments). Overall, the updated
cyber model has more than six million simulated events between
those that impact individual risks, points of aggregation, and
systemic ransomware attacks.
“The probabilistic ransomware model covers systemic ransomware
events, that is, widescale events that affect more than one
organization at a time,” said Scott Stransky, vice president &
director of emerging risk modeling at AIR Worldwide. “However,
unlike an event that takes an entire cloud provider down and all
the companies using that cloud with it, these ‘partial’ aggregation
events only impact a percentage of organizations that are
vulnerable to that particular method of attack, a problem that is
particularly well-suited to stochastic modeling. For example,
NotPetya impacted only a small fraction of the companies that had
the necessary vulnerability – older, unpatched versions of SMB
(Server Message Block), a protocol used to communicate between
nodes on a network. By modeling many potential points of
aggregation, we can capture a wide range of ransomware
scenarios.”
ARC is a part of Verisk's Cyber Solutions Suite which was named
Cyber Solution of the Year at the InsuranceERM Annual Awards 2020 –
Americas. The Verisk Cyber Solutions suite, built on a database
with information from more than 12 million worldwide businesses,
delivers policy language, loss costs, analytics, modeling, workflow
capabilities, and more.
About Verisk Verisk (Nasdaq:VRSK) is a leading
data analytics provider serving customers in insurance, energy and
specialized markets, and financial services. Using advanced
technologies to collect and analyze billions of records, Verisk
draws on unique data assets and deep domain expertise to provide
first-to-market innovations that are integrated into customer
workflows. Verisk offers predictive analytics and decision support
solutions to customers in rating, underwriting, claims, catastrophe
and weather risk, global risk analytics, natural resources
intelligence, economic forecasting, and many other fields. Around
the world, Verisk helps customers protect people, property, and
financial assets.
Headquartered in Jersey City, N.J., Verisk operates in 30
countries and is a member of Standard & Poor's S&P 500®
Index. In 2018, Forbes magazine named Verisk to its World's Best
Employers list. For more information, please visit
www.verisk.com.
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For more information, contact:Kevin LongAIR
Worldwide+1-617-267-6645klong@air-worldwide.com
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