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13 Apr 2022
Startup brings insurance technology to cybersecurity
Many countries' digital economies are based on millions of small and medium sized businesses. Cybercriminals also target these companies because they find it difficult to secure their cloud and on-premise IT systems due to a lack of technical expertise and financial resources. These companies often fall victim to malware and ransomware attacks, according to many research reports. Often, the only way to regain access to business data is to pay the ransom demanded.
It is not uncommon for companies to purchase cybersecurity insurance in order to recoup their financial losses and other damages. Many insurers, however, find the risk of offering this type of insurance too high and are pulling out of the market. Aside from the financial risk, many insurance companies simply fail to see how small- and medium-sized businesses might be able to improve their cybersecurity skills, so they fear an avalanche of claims.
A start-up in Europe is tackling this issue by combining these two issues: they want to help SMB companies improve their cybersecurity while at the same time providing insurance to cover the cost of damage caused by ransomware or other criminal activities. TIIN Capital, a European venture capital firm, just invested 4,5 million euros in this startup, Eye Security. Through the investment, Eye Security can expand internationally.
As a result of the Eye Security solution, insurance for companies is immediately possible again, since the combination of security measures drastically lowers the risk of an attack and also minimizes its impact. Eye Security will also insure the residual risk for its customers in the short term in order to remove cybercrime risks from the balance sheets of companies. Eye Security is positioning itself as the first European Insurtech in the field of cyber security by offering cyber insurance.
Photo credit: Scott Graham
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