Highlights:

  • According to Cowbell, the dynamic nature of cyber risk necessitates insurance policies to evolve in a manner that is commensurate with this nature.
  • The new offering combines risk management tools and services with coverage to empower policyholders with the ability to continuously adapt to shifting changes in the threat environment.

Cowbell Cyber Inc, a cybersecurity insurance provider, announced the launch of a new product called Adaptive Cyber Insurance and a new subsidiary called Cowbell Specialty Insurance Co.

Adaptive Cyber Insurance is being marketed as having the ability to provide a dynamic approach to insuring risk that is constantly changing. According to Cowbell, the dynamic nature of cyber risk necessitates insurance policies to evolve in a manner that is commensurate with this nature. The new product transforms cyber coverage from a static offering into a dynamic one and is adaptable to current and future threats.

With Adaptive Cyber Insurance, policies can change more frequently than once a year to remain aligned with the policyholder’s cyber exposures, prevent coverage gaps, and bring full transparency into renewal terms throughout the policy period. It’s believed that the service will give policyholders the ability to enhance the cyber risk profile of their organization to prevent potentially catastrophic financial losses or reputational damages.

The new offering combines risk management tools and services with coverage to empower policyholders to adapt continuously to shifting changes in the threat environment. The engagement begins with a real-time benchmark of cyber risks determined by Cowbell Factors and includes inside-out risk data. Continuous risk engineering services and risk monitoring help policyholders alleviate newly identified exposures and security shortcomings.

In preparation for the launch of the product, Adaptive Cyber Insurance was tested by some existing policyholders, who, according to the company, saw an overall improvement of nine percent in their risk profile when benchmarked against their industry peers.

Jack Kudale, founder and chief executive officer of Cowbell, said, “Three years ago, we launched the insurance industry’s first-ever continuous underwriting platform that aligned insurable threats to risk exposures in order to proactively mitigate losses in the aftermath of cyberattacks. He added, “Today, our journey has set us up to lead the next wave of innovation in the cyber insurance industry.”

Cowbell’s new Specialty Insurance Co was introduced concurrently with the company’s Adaptive Cyber Insurance product. This addition enhances Cowbell’s existing business model and joins the panel of 15 carriers and reinsurers who support Cowbell Prime cyber insurance programmes.

When paired with Cowbell’s reinsurance service, Cowbell Speciality offers additional flexibility and control in serving the market with solutions such as Adaptive Cyber Insurance while enforcing best-in-class underwriting for unit-based profitability. This is made possible by Cowbell’s unique ability to provide insurance and reinsurance under one roof.

Kudale added, “Adaptive Cyber Insurance is a major evolution for cyber insurance, and with the launch of Cowbell Specialty, along with Cowbell Re, we gain the insurance footprint of a tech-enabled, full stack high-growth insurer, giving us the flexibility to expand our business and innovate for the benefit of all our policyholders.”