With cysmo® the Hamburg-based consulting and software company PPI AG created a new online analysis tool which enables insurers to quickly and precisely rate the cyber risks of different companies. cysmo® is already being tested for risk assessment by the first insurers. The threat of cyber attacks keeps increasing. In the last two years already, every second company in Germany was at the centre of such attacks, according to the industry association Bitkom. That is why more and more insurers offer policies for the protection against cyber risks. Industry experts predict that in only a few years such insurances for IT attacks will likely become the norm for companies, similar to a fire or liability insurance.
"cysmo® is completely unique and offers valuable support for the cyber insurance market. It gives a realistic real-time statement on a company's cyber security and therefore provides a basis for the calculation of an insurance policy in line with market conditions", says Sebastian Scholz, senior manager at PPI.
cysmo greatly facilitates the risk assessment of SMEs
Until now, insurers had to rely on questionnaires and IT audits for the risk analysis. For the analysis of smaller companies, questionnaires may be useful, but the inclusion of an audit is only profitable for very big companies. "In between lies a vast field of companies for which a questionnaire is not enough and an audit simply too cost-intensive“, states Matthias Müller, member of PPI's executive board. cysmo® recognises exactly these cases and optimally supplements both approaches to risk assessment with a dynamic, fully automated online analysis from the hacker's perspective. In general cysmo® can be applied to the risk assessment of companies of any size. "The analysis of small and medium-sized enterprises with a turnover of up to 50 million euros yields the biggest effects for insurances, since audits are not profitable for these", explains Matthias Müller, member of the executive board. There are more than 100,000 such enterprises in Germany.
The results of the cysmo® scoring provide not only valuable information for the insurer. The reporting can also help the applicant to optimise their IT security. A win-win-situation, because the lower cover risk is also reflected in the premium.
Gothaer already on board
In the US, cyber insurances with a premium volume of about three billion euros have been a booming business for a long time. The German market, on the other hand, with just under 90 million euros is still at its very beginning. One of the first German insurers that actively use cysmo® is the Gothaer Group in Cologne, where the analysis tool has been in use since January. "Cyber risks are still uncharted territory for the insurance industry," says Frank Huy, Head of Financial Lines at Gothaer. "Those who can correctly identify and rate actual threats are laying the foundation for building a profitable portfolio. cysmo® provides excellent support for the insurer in the analysis and rating process of cyber risks."
PPI AG has been working successfully as a consulting and software company for banks, insurances and financial service providers for over 30 years. In the project business our customers value our simple and flexible way of working. We combine expert knowledge with technological proficiency to make your project a success. Across Europe we work in the instant payments sector and lead the market with our standardised products. A steadily growing family-owned stock company, our over 500 employees focus exclusively on our customers' success.