Blockchain Data Relay for Cyber Risk Evidence Tracking
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Insurance companies face challenges in setting appropriate cyber insurance premiums due to increased cyber risks after contracts are concluded, as network administrators may reduce security measures and hide information, leading to potential losses and increased premiums.
Innovation Solution
A data relay system that relays data between internal and external terminals, using a data block transmission device to generate and store data blocks in a blockchain network, ensuring data integrity and accountability, allowing insurance companies to determine negligence and set reasonable premiums.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cyber insurance contracts are concluded with network administrators, then insurance coverage is provided, but cyber risks increase after contracts are concluded due to reduced security efforts by administrators
Solution Approach 1:
The patent applies preliminary anti-action by implementing monitoring and verification mechanisms before and during the insurance contract period. The system proactively detects security posture changes and communicates risk information to policyholders before incidents occur, counteracting the tendency to reduce security efforts after contract conclusion. This includes continuous monitoring of security controls and providing feedback to maintain security awareness throughout the policy period.
2Measurement precision
If insurance companies investigate policyholders for negligence after losses, then compensation can be adjusted, but policyholders may hide inconvenient information or provide minimum information
Solution Approach 1:
The patent applies preliminary action by implementing continuous monitoring and automatic data collection mechanisms throughout the insurance period. Security controls, logs, and system states are captured and stored before any incident occurs, creating an objective evidence base. This eliminates the need for post-incident investigations that rely on policyholder disclosure, as the data is already collected and verified by the monitoring system.
Solution Approach 2:
The patent introduces an intermediary monitoring system that acts as a neutral third party between the insurance company and policyholder. This system automatically collects, verifies, and stores security-related data, removing the adversarial information exchange. The intermediary provides objective evidence that both parties can trust, eliminating the incentive for policyholders to hide information while reducing the investigative burden on insurers.
3Reliability
If insurance companies estimate greater cyber risks to set larger premiums, then potential losses are covered, but appropriate premium setting becomes difficult and insurance costs increase
Solution Approach 1:
The patent implements continuous feedback loops where monitoring data from policyholder networks is collected, analyzed, and used to update risk assessments in real-time. This feedback mechanism provides insurance companies with accurate, objective information about actual security postures and risk levels, enabling precise premium setting that reflects true risk rather than conservative estimates. The feedback also includes communication to policyholders about their security status, creating a cycle of continuous improvement.
Data Source
AI summary
An insurance company can set an appropriate cyber insurance premium. A data relay device relaying data to be communicated between internal terminals in a network and an external terminal also transmits the data to a data block transmission device. The data block transmission device generates data block as a collection of multiple pieces of data received from the data relay device and transmits the data block to a node in a blockchain network to store the data block into the block chain network. This allows the data communicated between the internal terminals in the network and the external terminal to be stored into the blockchain network. The cause or the responsibility for intrusion into the network is thus revealed by examining the data. The insurance company can set an appropriate insurance premium that is reasonably determined based on cyber risks estimated at the time of the contract.