Cyber Risk Score Trends from Continuous Network Monitoring
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Solution Overview
Problem
Insurance carriers face challenges in assessing and managing the evolving cybersecurity risks of computer networks over time, as conventional methods rely on initial underwriting that does not account for ongoing changes in cyber risk levels, leaving them exposed to potential higher risks during the policy period.
Innovation Solution
A computer-implemented system that periodically assesses cybersecurity risk using a risk model, incorporating data feeds from the insured's network to update risk scores and provide continuous monitoring and threat alerts, enabling dynamic pricing and risk management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Difficulty of detecting and measuring
If manual underwriting is used to assess cyber risk, then the initial risk assessment is simple and relies on policyholder input, but the system cannot detect ongoing changes in cyber risk levels throughout the policy period
Solution Approach 1:
The patent introduces a risk model as an intermediary component that automatically processes network data and calculates risk scores. This mediator between raw network data and insurance underwriting decisions enables continuous risk assessment without requiring manual intervention, resolving the contradiction between detection capability and system complexity
Solution Approach 2:
The patent replaces manual underwriting processes with an automated computer-implemented system that continuously monitors network traffic and applies risk models. This substitution of mechanical manual assessment with automated electronic processing enables ongoing risk detection while managing complexity through standardized algorithms
2Reliability
If continuous monitoring of cyber risk is implemented, then the insurance carrier can detect changes in risk levels, but the system requires ongoing data processing and model updates
Solution Approach 1:
The patent implements periodic risk assessments at policy renewal and at defined intervals during the policy period. This periodic action allows the system to maintain reliability through regular updates while avoiding the continuous processing burden of real-time monitoring, thus improving productivity
Solution Approach 2:
The patent establishes continuous data collection from network devices throughout the policy period, with the risk model updated periodically. This approach maintains continuous monitoring capability for reliability while using batch processing for model updates, thereby preserving productivity
3Adaptability or versatility
If dynamic pricing based on real-time risk is implemented, then the insurance carrier can adjust premiums to reflect current risk levels, but the system complexity increases
Solution Approach 1:
The patent implements dynamic pricing by updating risk scores at policy renewal based on accumulated network data and risk model results. This dynamic adjustment allows pricing to adapt to changing risk levels while using a structured renewal process to manage system complexity
Solution Approach 2:
The patent changes the pricing parameter based on the risk score output from the risk model. By using the risk score as an intermediate parameter that encapsulates complex network security assessments, the system achieves flexible pricing without directly managing the underlying complexity
Data Source
AI summary
Systems and methods for assessing cybersecurity risk of a computer network include the use of a risk model application that is configured to determine an initial cyber risk score value based upon an underwriting process. A cyber risk data stream is sent from the client's computer network to the system processor to periodically calculate an updated cyber risk score based upon actual data. The system processor is adapted to use the data stream to generate client information that is accessible by the client via a web-based client portal. In embodiments, the cyber risk data stream can be actively monitored to identify a threat of a cybersecurity breach.