104891Disrupting the cybersecurity insurance market through a technology and business model playClosedCollaborative R&DISCF"A decade ago, if you wanted car insurance you went to a high street broker and completed a paper form. Even though the risk was often badly priced, both the broker and the underwriter typically made a healthy margin. Today, automotive insurance is highly automated. Risk, particularly for younger drivers is 'personalised' via an on-board black-box that allows good driving behaviour to be rewarded in a transparent way that reduces risk for both parties. The old-style brokers are gone, much of the market is now direct and new business models such as 'compare the market' result in fewer players transacting on finer margins. Cyber insurance is one of the most dynamic and fastest growing areas of insurance today. Yet, when a company applies for cyber insurance, it is still required to complete a questionnaire (paper or phone) providing generic information. The annual premium bears little relation to the company's current risk and cannot not account for dynamic changes. As premiums are high, many elect not to insure or find themselves under-insured/not covered for a particular risk. We believe that what happened to car insurance is about to happen to the cyber insurance market and we intend leading this transformation. Our project applies AI/data techniques ('cybermatics') to the UK cyber insurance market. We have already developed a cyber risk detection product which collects risk data from business devices. We will apply AI to this data to enable UK insurers to better price cyber risk premiums and reward good cyber risk management through reductions in insurance premiums. Insurance is a global market in which the UK has led the world. We believe that: * our software and data-enabled transformation of the business model can help the UK defend and grow its position in cyber insurance; * we merit InnovateUK's support because of the need to out-innovate some of the massive insurers from the Far East and Asia who are beginning to exploit markets beyond their borders. If we want to see off these challenges, we have to bring in new models, and do so before it is too late; and * a product that helps reduce the UK's exposure to cyber-attack is a net public good, and increasingly crucial in an age where asymmetric non-conventional attacks as an instrument of policy are prevalent by rogue states."