Sapiens, a provider of software solutions for the insurance industry, has partnered with Kovrr, a predictive cyber risk modelling firm, as part of a strategy to offer its open-API architecture and make third party and insuretech solutions available to its customers.
The Kovrr-Sapiens partnership will enable UK insurers to comply with PRA regulations and manage cyber risk, it says.
Kovrr's predictive cyber risk modeling platform aims to deliver transparent, real-time, data-driven insights to global insurers and reinsurers regarding their risk exposures.
Non-affirmative (silent) cyber risk occurs when insurance policies do not explicitly factor cyber risk. This creates potential exposure for a cyber event to 'silently' trigger policy losses through a large-scale, catastrophic cyber event.
"Today's insurers are increasingly exposed to cyber risk," said Yakir Golan, CEO, Kovrr. "Cyber risk now affects all lines of insurance.
"Potentially catastrophic events – such as an oil tanker or cargo ship crashing after its navigation system was hacked, or the national electricity grid becoming compromised – may lead to numerous cyber-triggered insurance claims.
"The Kovrr-Sapiens partnership will help existing and potential Sapiens customers obtain real visibility into the full spectrum of cyber risk they face, as well as helping them comply with the PRA's requirements, both now and in the future."