Commercial insurtech companies, which sell policies to businesses, fall into four subsegments:
- Business liability: Insurance that protects businesses against claims of faulty products, defects, bodily injuries, property damage and other losses.
- Cyber insurance: Insurance that can provide additional protection from cyberattacks, acting as a backstop for lost opportunity costs, liability and other potentially catastrophic losses typically not covered under commercial policies.
- Employment: Workers’ compensation insurance and employment practices liability insurance.
- Loss protection: Protecting customers from damages and other losses.
Growing cyber-risk, along with the changing nature of digital attacks that leaves gaps in coverage, has convinced many companies to pursue standalone cyber insurance policies, according to PitchBook analyst Robert Le.
This trend is reflected in the data: Of the five most well-funded companies in the commercial segment, three are cyber insurance companies.
Ten cyber insurance companies have raised $1.2 billion, which is nearly 31% of the cyber insurance subsegment’s total value. This includes companies like Coalition, a cyber-risk platform developer and Corvus, a commercial insurance data platform developer.
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