Coalition Cyber ​​Insurance Delivers End-to-End Solution to Today’s Cyber ​​Threats Raises $250M

We’re excited to bring Transform 2022 back in person on July 19th and in practice from July 20th to 28th. Join AI and data leaders for insightful conversations and exciting networking opportunities. Register today!

As a provider of what it calls “Active Insurance,” Coalition not only offers insurance coverage against cyber threats, but also offers a real-time risk assessment tool that can provide real-time profiles of an organization’s digital risks and support for incident response in the event of a breach.

Since the organization was founded in 2017, Coalition has quickly established itself as one of the largest providers in the cybersecurity insurance market, which researchers estimated at $11.9 billion in 2022 and is expected to reach $29.2 billion in 2027. Mr.

The Coalition today announced that it has raised $250 million as part of a Series F funding round. The new funding brings the organization’s valuation to $5 billion.

One of the key reasons for the Coalition’s rapid growth — and the cyber insurance market as a whole — is that businesses are in dire need of solutions to mitigate the financial impact of breaches. The average cost of a single breach in 2021 was $4.24 million, and cyber insurance has the potential to reduce overall costs.

Reduce data breach costs with cyber insurance

The increase in volume and sophistication of modern attacks has led organizations to use cyber insurance to reduce the financial risk associated with data breaches.

Today, many businesses realize that they are unable to adequately control cyber risk across the entire attack surface, with research showing that 83% of organizations report that they are not adequately protected against digital threats. This highlights that today’s cyber threats are simply too complex for businesses to deal with with complete consistency.

“People are often still surprised by how much of our economy is dependent on digital technologies related to digital systems. It is predicted that over 60% of global GDP will be digitized by the end of this year, relying in some way on a digital system,” said Shaun Ram, Head of Insurance at Coalition.

“But when an incident hits these digital systems, there’s no 911 to call, no people to show up to help you. Larger organizations may have a large security and IT team, but small and medium-sized organizations are often left to fend for themselves,” Ram said.

Ram explains that Coalition aims to provide support to these organizations, reducing cyber risk by providing tools and coverage that can help before, during and after a security incident, offering services such as digital forensics and incident response.

Key players in the cybersecurity insurance market

When it comes to insurance providers, Coalition competes with some monolithic providers. One of its biggest competitors is AIG, an insurance provider that offers cyber insurance coverage and recently announced raising $9.4 billion in 2021 revenue.

AIG’s liability coverage for CyberEdge covers financial costs associated with a data breach, in addition to event management, data recovery, third-party costs, network disruption and extortion.

There is also an extended policy that covers business interruption, property damage, physical industry and product/completed operation coverage.

Another important competitor is Beazley, which offers its own cyber insurance package for small and medium-sized organizations, offering cover against cyber extortion, data recovery, business interruption and cybercrime. The company recently announced that it generated $369.2 million in profit last year.

Other competitors include Hiscox, a small business insurance provider with a cyber insurance package, which said it generated $190.8 million in profit last year.

However, one of the key differences between Coalition and traditional reactive insurance competitors is that Coalition says its Active Risk platform has the ability to proactively scan and monitor billions of devices connected to the public Internet. This allows users to receive personalized recommendations on how to manage cyber risk in a way that they would not with a conventional insurance service.

VentureBeat’s mission is to be a digital town square for technical decision makers to gain knowledge about transformative enterprise technologies and transactions. Learn more about membership.

Leave a Comment

Your email address will not be published.