Simon Glairy is a recognized expert in the fields of insurance and Insurtech, with a specialized focus on risk management and AI-driven risk assessment. His wealth of knowledge and experience provides valuable insights into the evolving landscape of cyber risk and the pivotal role innovation plays in shaping it. In this interview, Simon elaborates on BreachBits, a company founded by former US military cyber warfare veterans, and their groundbreaking cyber hacking technologies co-developed for the Lloyd’s market.
Can you explain what BreachBits does and what sets it apart from other cyber hacking innovation companies?
BreachBits specializes in developing cutting-edge cyber hacking technologies. What truly sets us apart is our unique perspective as former US military cyber warfare veterans. This experience allows us to understand threat landscapes better and design solutions that are both innovative and practical. Our flagship products, the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention, provide automated tools that significantly enhance the efficiency and accuracy of cyber risk underwriting.
What motivated you to found BreachBits, and how did your experience as former US military cyber warfare veterans influence the company’s direction?
Our motivation stems from our firsthand experience in dealing with cyber threats at a military level. We saw a significant gap in the market for robust, real-time cyber risk assessment tools. Our military background has profoundly influenced our approach, allowing us to bring a proactive, defensive mindset to the insurance sector. This perspective ensures our solutions are designed not just to assess but also to actively manage and mitigate risks.
How did the co-development project during Lloyd’s Lab cohort 13 come about?
The co-development project during Lloyd’s Lab cohort 13 was an exciting opportunity that arose from our shared vision with Lloyd’s to transform the cyber risk landscape. The collaboration was a natural fit, aligning our innovative approach with Lloyd’s commitment to driving market advancements. This partnership provided a platform to refine our technologies and test them in a real-world insurance setting.
What were the specific goals of the co-development project with Lloyd’s during the Lab cohort?
The primary goals of the co-development project were to enhance the efficiency and accuracy of cyber risk underwriting and to develop tools that could help insurance carriers and brokers manage risks more effectively. We aimed to address market challenges such as the need for quicker policy issuance and more proactive risk management, ensuring our products could deliver tangible benefits in these areas.
Can you give us more details about the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention products co-developed for the Lloyd’s market?
The Cyber Questionnaire Validator is designed to streamline the underwriting process by reducing time and improving risk selection. It automates the evaluation of cyber risk questionnaires, providing faster and more accurate assessments. The Cyber Pre-Claim Intervention, on the other hand, enables insurers to manage cyber incidents proactively. It offers early detection and intervention capabilities, allowing for potential threats to be addressed before they escalate.
How do these automated tools improve the efficiency and accuracy of cyber risk underwriting?
By leveraging our advanced AI-powered systems, these tools automate extensive parts of the underwriting process that were traditionally manual. They deliver precise, data-driven insights quickly, enabling underwriters to make more informed decisions in a shorter timeframe. This automation not only speeds up the process but also reduces the potential for human error, resulting in more accurate risk assessments.
In what ways do these products enhance profitability for insurance carriers and brokers?
Enhanced efficiency in the underwriting process translates directly to cost savings. Faster policy issuance and better risk selection mean carriers and brokers can serve more clients with fewer resources. Additionally, proactive risk management through tools like the Cyber Pre-Claim Intervention helps prevent costly claims, further boosting profitability.
What key challenges in the insurance market do the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention aim to address?
These products tackle several critical challenges, including the need for speed in policy issuance, the accuracy of risk selection, and the proactive management of cyber threats. By providing real-time insights and automated assessments, they help insurers stay ahead of emerging risks and respond to incidents before they escalate into significant problems.
Can you explain what BreachRisk a.i. is and how it powers both products?
BreachRisk a.i. is our sophisticated backend system that drives both the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention. It performs extensive hacker assessments, leveraging a vast database of cyber attack vectors and patterns. This AI system detects, verifies, and tests potential attack pathways, providing a comprehensive view of an organization’s cyber risks from the perspective of an attacker.
How does BreachRisk a.i. conduct hacker assessments, and what makes it a “mature” backend system?
BreachRisk a.i. conducts assessments by simulating hacker behavior and identifying vulnerabilities in real-time. Its maturity comes from extensive testing and refinement, having conducted over 50,000 hacker assessments since 2020. This experience has honed its accuracy and reliability, making it a trusted tool for cyber risk assessment.
Can you discuss the significance of detecting, verifying, and testing over 95% of actual attacker pathways identified in the Verizon 2024 Data Breach Investigations Report?
Detecting such a high percentage of real-world attack pathways is a significant milestone. It validates the effectiveness of our technology in identifying actual threats that organizations face. This ability to mirror real attacker behaviors ensures insurers and their clients receive accurate risk assessments, which is crucial for developing robust defense strategies.
How does offering a hacker’s view of cyber risk benefit the insurance industry?
Providing a hacker’s view allows insurers to understand potential vulnerabilities from the same perspective as a cyber attacker. This insight helps in identifying and addressing weaknesses before they can be exploited, leading to better risk management and mitigation strategies. It empowers insurers to offer more accurate policies and proactive interventions, ultimately enhancing trust and confidence in their services.
During the Lloyd’s Lab accelerator, with which key carriers and brokers did BreachBits pilot its technology?
While specific names are confidential, we collaborated with several leading carriers and brokers in the Lloyd’s market during the accelerator. These partnerships allowed us to test and refine our technologies in diverse, real-world scenarios, ensuring they meet the needs of various stakeholders in the insurance industry.
What feedback did you receive during the pilot testing phase regarding the Cyber Questionnaire Validator?
The feedback was overwhelmingly positive. Participants noted significant reductions in underwriting time and improved accuracy in risk assessments. They appreciated the tool’s ability to streamline processes and provide reliable, data-driven insights, which enhanced their underwriting efficiency and decision-making capabilities.
What feedback did you receive on the Cyber Pre-Claim Intervention’s potential to enable insurers to proactively manage cyber incidents?
Insurers recognized the Cyber Pre-Claim Intervention’s potential to revolutionize how they handle cyber threats. They valued its proactive approach, allowing them to mitigate risks before they develop into claims. The ability to detect and intervene early was seen as a game-changer, enhancing their capacity to protect clients and reduce losses.
What are your thoughts on Lloyd’s decision to make its third investment in a Lloyd’s Lab alumnus?
Lloyd’s continued investment in Lab alumni underscores their commitment to innovation and market advancement. It reflects their belief in the transformative potential of the technologies developed within the accelerator. For us, it’s a powerful endorsement that validates our approach and propels our mission to revolutionize cyber risk assessment.
How has Lloyd’s investment strengthened BreachBits’ ability to develop data-driven cyber solutions?
Lloyd’s investment has provided crucial support, enabling us to accelerate the development and refinement of our data-driven cyber solutions. It has facilitated deeper research, more extensive testing, and broader market reach. This backing ensures we continue to innovate and offer tools that meet the evolving needs of the insurance industry.
In what ways has Lloyd’s support helped BreachBits refine its approach from concept to market-ready solutions?
Lloyd’s support has been instrumental in our journey from concept to market-ready products. The resources, mentorship, and real-world testing opportunities provided through Lloyd’s Lab helped us fine-tune our technologies. Feedback from industry leaders allowed us to address practical challenges and ensure our solutions deliver real value to the market.
Can you share more about BreachBits’ headquarters in Greater Washington, DC, and its additional offices in Annapolis, Minneapolis, and Little Rock?
Our headquarters in Greater Washington, DC, places us at the heart of cybersecurity innovation and policy-making. The additional offices in Annapolis, Minneapolis, and Little Rock extend our reach and enhance our ability to collaborate with key stakeholders across different regions. These locations are strategic, offering access to diverse talent pools and regional markets.
How do these locations contribute to your company’s operations and growth?
Each location plays a vital role in our operations and growth. They facilitate regional engagement, enabling us to understand and address local market needs effectively. Additionally, they offer access to specialized knowledge and talent, fostering innovation and supporting our continuous expansion.
What are your plans for the future, given the recent investment from Lloyd’s?
The recent investment positions us for substantial growth. We plan to scale our existing products, enhance their capabilities, and explore new innovations in cyber risk assessment. This includes expanding our market reach and deepening our partnerships within the insurance industry to continually improve our solutions.
How does BreachBits aim to continue revolutionizing cyber risk assessment for insurers?
We are committed to pushing the boundaries of what’s possible in cyber risk assessment. By leveraging advanced AI technologies, continuously refining our tools, and staying ahead of emerging threats, we aim to provide insurers with unparalleled insights and proactive solutions. Our goal is to make cyber risk management more efficient, accurate, and effective for the entire industry.
Do you have any advice for our readers?
Embrace innovation and stay proactive. The cyber threat landscape is continually evolving, and staying ahead requires both vigilance and a willingness to adapt. Invest in robust risk assessment tools and foster a culture of continuous learning and improvement. By doing so, you’ll be better prepared to navigate the complex world of cyber risk.
