For decades, we have been fighting the cybersecurity battle with an analog mindset. We have invested billions of dollars and millions of man-hours trying to create higher fences, deeper moats, and smarter guards. But, new vulnerabilities will always be found in our digital infrastructure and humans will continue to exploit them. The damage will continue to rise in costs of both resources and fundamental trust in our digital society as the economics of the problem continue to favor the attacker.
The White House Council of Economic Advisors nailed this economic challenge in their 2018 report on the cost of cyber attacks to the US economy.
Cybersecurity is a common good; lax cybersecurity imposes negative externalities on other economic entities and on private citizens. Failure to account for these negative externalities results in underinvestment in cybersecurity by the private sector relative to the socially optimal level of investment. Cyber attacks against critical infrastructure sectors could be highly damaging to the U.S. economy.
-CEA Report: The Cost of Malicious Cyber Activity to the U.S. Economy
Not only is cybersecurity a “common good” problem, but it's a big one, costing the U.S. up to $109 billion in 2016. We believe it’s time to rethink our strategy and evolve from cybersecurity to cyber resilience.
As cyber risks continue to grow in complexity, success in the future will depend on a business's ability to craft a cyber resiliency strategy that combines world-class prevention capabilities with insurance coverage to enable a speedy recovery. Economic analysis of flood insurance affects after hurricane Katrina, showed that houses with insurance were 37% more likely to be rebuilt than those without insurance. As a cyber first responder myself working with Homeland Security and the White House, I can validate that positioning resources ahead of a disaster is critical to getting operations and lives rebuilt after a catastrophe.
It is with this mindset that we created Resilience Insurance.
We believe that by helping insurance companies harness their data using better tools and analytics, they can drive better security decisions and resilience among their customers. The key to solving this problem is the ability to sift through trillions of data points to understand and eventually predict the effect of cyber attacks on organizations and industries. This understanding and prediction can then be able to tune investments in security to mitigate the greatest loss for a specific businesses size, industry, and risk profile. A holistic to cyber resilience.
This is an audacious goal, so we have built a team of cybersecurity and insurance experts with deep insights and knowledge that we are pairing with some of the brightest data scientists in the industry to attack this problem.
Join us and be part of the solution.
-Davis Hake, Co-Founder