Cyber Insurance Underwriting
Optiv currently conducts market diligence work on behalf of insurance carriers that are thinking about underwriting a client, and has twice during Lynch’s tenure evaluated becoming an insurance carrier itself. For now, though, Optiv remains focused on supporting the underwriters since there’s a financial incentive to raise the efficacy of the underwriting given the increase in premiums.
Lynch said Optiv would prefer to walk into the cyber insurance market given the liability and financial risks, and for now remains focused on building more trust with underwriters and customers in the space. Optiv is currently focused on reducing the risk of a cyberattack for businesses by building out a managed identity program, data governance program and active threat hunting program, according to Lynch.
Once Optiv adds penetration tests and environmental scans for its customers, Lynch said Optiv will be approximately 70 percent of the way toward eliminating risk for businesses and their insurance carriers. At that point, Lynch said Optiv might be open to actually insuring the gap itself.
“Liability in this marketplace is a big issue that‘s got to get resolved,” Lynch said. ”Do we go to that next step of becoming an insurance carrier? While it could be argued it’s consistent with our notion of security focused, I think we’re going to take the first step of supporting the underwriters. We think there’s a good profit motive for us.”