The Coalition’s Cyber ​​Insurance Offers a Holistic Solution to Today’s Cyber ​​Threats, Raising $250 Million

As a provider of what it calls “Active Insurance”, Coalition not only provides insurance coverage against cyber threats, but also provides a real-time risk assessment tool that can provide real-time profiles of an organization’s digital risks, and incident response support in the event of a malfunction.

Since the organization’s inception in 2017, Coalition has quickly established itself as one of the largest providers in the cybersecurity insurance marketwhich researchers have estimated to be worth $11.9 billion in 2022 and are expected to reach $29.2 billion by 2027.

Today, Coalition announced it has raised $250 million as part of a Series F funding round. The new funding brings the organization’s valuation to $5 billion.

One of the main reasons for the rapid growth of Coalition — and the cyber insurance market as a whole — is that companies urgently need solutions to mitigate the financial impact of break-ins. The average costs from a burglary in 2021 was $4.24 million, and cyber insurance has the potential to reduce overall costs.

Reduce the costs of a data breach with cyber insurance

An increase in the volume and sophistication of modern attacks has pushed organizations to use cyber insurance to mitigate the financial risk associated with data breaches.

Today, many enterprises realize that they are unable to adequately manage cyber risks overall attack surfaceof Research showing that 83% of organizations indicate that they are not sufficiently protected against digital threats. This highlights that modern cyber threats are simply too complex for enterprises to address with complete consistency.

“People are often still amazed at how much of our economy relies on digital technologies connected to digital systems. It is predicted that by the end of this year, more than 60% of global GDP will be digitized, dependent in some way on a digital system,” said Shawn Ram, Coalition chief of insurance.

“But when an incident hits these digital systems, there’s no 911 to call, no emergency responders to show up to help you. Larger organizations may have large security and IT teams, but small and medium-sized organizations are often left to their own devices,” said Ram.

Ram explains that Coalition aims to support these organizations and mitigate cyber risk by providing tools and coverage that can help before, during and after a security incident, by offering services such as digital forensics and incident response.

Key players in the cybersecurity insurance market

When it comes to insurers, Coalition competes with some monolithic providers. One of its biggest competitors is AIGan insurance company that provides cyber insurance coverage, and recently announced raising $9.4 billion revenue for 2021.

AIG’s CyberEdge liability coverage covers the financial costs associated with a data breach, in addition to event management, data recovery, third-party costs, network outages and extortion.

There is also a comprehensive policy that covers business interruption, property damage, physical industry and product/completed operations.

Another prominent competitor is Beazleywhich offers its own cyber insurance package for small and medium-sized organizations, which provides cover against cyber extortion, data recovery, business interruption and e-crime. The company recently announced that it has generated $369.2 million gain last year.

Other competitors include: hiscoxa small business insurance company with a cyber insurance package, announcing $190.8 million in revenue gain last year.

However, one of the key differences between Coalition and traditional reactive insurance competitors is that Coalition says its Active Risk platform has the ability to proactively scan and monitor billions of devices connected to the public internet. This allows users to get personalized recommendations on how to manage cyber risk in a way they wouldn’t with a conventional insurance service.