Coalition is a start-up Cyber-security/cyber insurance company. In this interview with co-founder Joshua Motta he mentions the ability to "underwriter" using large volumes of data rather than underwriters using small numbers of data points.
For frontier risks such as cyber it is maybe not surprising that we are seeing "different" ways of underwriting. The interesting question is of course at what point and in what ways do such methods permeate more traditional classes of business?
Coalition is working with Swiss Re and Argo suggesting this is not just a naive start-up with an unachievable dream.
We underwrite without any underwriters. We are able to rate, quote, bind and issue a policy of insurance in under four minutes. Brokers just type in their client’s website and other minimal information, and we go out and gather the rest. We use publicly available information to access an enormous number of data points to understand a company’s risk surface and accurately price that company’s risk. We look at not just historic information but a continuous stream of data that enables live pricing based on actual risk and usage. This enables us to not only collect tens of thousands of data points relevant to a risk but to also then use that data to make underwriting decisions in milliseconds. ... Gone are the days when a risk might be underwritten with a handful of data points.