BreachBits announces it has received investment from Lloyd’s, the world’s leading insurance and reinsurance marketplace, through its central fund. This is Lloyd’s 3rd strategic innovation investment from among over 150 alumni of the Lloyd’s Lab. This investment follows BreachBits’ successful co-development project in Lloyd’s Lab cohort 13, which ran from September to December 2024.
“BreachBits is revolutionising cyber risk assessment by providing insurers with key visibility into their clients’ security posture.”
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BreachBits, founded by former US military cyber warfare veterans, is a cyber hacking innovation company that has co-developed two unique products tailored by and for the Lloyd’s market: The Cyber Questionnaire Validator and Cyber Pre-Claim Intervention. These automated solutions aim to improve the efficiency and accuracy of cyber risk underwriting while enhancing profitability for carriers and brokers.
Rosie Denée, Head of Innovation, Commercial Education and Engagement at Lloyd’s, commented: “BreachBits is revolutionising cyber risk assessment by providing insurers with key visibility into their clients’ security posture. Their time in the Lloyd’s Lab helped refine their approach from concept to market-ready solution, demonstrating exceptional results during pilot testing. We’re proud to support their continued growth through this investment – strengthening data-driven cyber solutions that enable our market to underwrite with greater confidence and precision.”
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The investment comes as the cyber insurance market is growing rapidly, with premiums increasing from over $15 billion to potentially more than $55 billion in the near future. BreachBits’ technology aims to address key market challenges, including the need for faster policy issuance and more effective active risk management and intervention capabilities.
J. Foster Davis, co-founder of BreachBits, stated: “We’re honored by Lloyd’s investment and proud to help facilitate Lloyd’s mission of sharing risk to create a braver world. Our team is committed to addressing real-world challenges in cyber insurance and risk management – especially in complex situations and where false-positives cannot be tolerated.”
BreachBits’ products are powered by BreachRisk a.i., a mature backend technology that has performed over 50,000 hacker assessments since 2020. This technology can detect, verify, and test over 95% of actual attacker pathways identified in the Verizon 2024 Data Breach Investigations Report (DBIR), providing a hacker’s view of cyber risk.
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During the Lloyd’s Lab accelerator program, BreachBits conducted a successful pilot with leading carriers and brokers. The pilot indicated that The Cyber Questionnaire Validator product could help reduce underwriting time and improve risk selection. Additionally, the Cyber Pre-Claim Intervention product showed promise in helping insurers proactively manage potential cyber incidents through active risk management, potentially reducing claims frequency and severity.
This investment demonstrates Lloyd’s commitment to fostering innovation that supports its market participants’ success. By backing BreachBits, Lloyd’s aims to provide its syndicates and brokers with tools to:
- Streamline the ability for brokers to identify and prepare applicants for market with a superior experience
- Improve the underwriting process, allowing for faster policy issuance to meet the growing demand
- Improve risk selection accuracy, potentially leading to better loss ratios
- Enhance customer service for brokers through quicker turnaround times on applications
- Provide added value to policyholders through proactive risk management
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Source – PR Newswire
