Founder and CEO of Intangic says cyber insurance policy can ‘ease some of the headache’ for risk managers
Newly-launched MGA Intangic’s chief executive told Insurance Times that using a parametric solution for its cyber insurance product can help “ease headaches” for risk managers – despite unintentionally introducing the parametric angle.
Ryan Dodd explained that the parametric structure for its CyFi product came about as a result of the company’s approach of looking at cyber as a high frequency risk.
The policy has two parametric triggers, one being the level of malicious activity targeting a company and the other a subsequent loss in value.
Dodd explained that the way Intangic developed its technology allowed for the introduction of a parametric solution.
“The parametric structure wasn’t the intent, it was the result,” he said.
“It was a result of our original approach, which was ‘look, cyber actually is a high frequency risk.’
“When you model it as such, the data set becomes very robust, allowing for greater transparency.
“We then thought that if we can place parametric triggers in here, then you’ve got a product that can also ease some of the headache.”
Dodd said he believed Intangic, which launched last week (16 March 2023) could achieve £10m worth of gross written premium in the next 12 months.
This is despite him admitting that a newly-launched policy could mean a slow start.
“It does take time to get the concept familiar,” he said.
“But as we roll it out, certainly we believe and Axa believe that there is a point at which this becomes a really strong addition to your cover.
“We think we can hit £10m in gross written premiums in 12 months in the UK.”
Intangic’s new policy will be underwritten by Axa XL, which worked with the cyber underwriter to develop the new product.
Dodd said that looking at cyber as a high frequency risk intrigued Axa XL, with the insurer supportive of Intangic’s different approach.
“It immediately said ‘we’re listening, keep going’,” he explained.
“Once we reached a conclusion the partnership came together – when [Axa XL became] comfortable with the data, it was very supportive.”
Intangic, which launched on March 16, said its CyFi product was aimed at large businesses headquartered in the UK.
As part of the policy, cover of up to £12.5m will be offered to businesses to cover losses from material cyber breaches.