CloudCover® Secures Patent Approval for Cybersecurity Insurance Utilizing Blockchain

The invention combines cybersecurity insurance with a blockchain recording system — allowing CloudCover to establish cybersecurity underwriting and set incremental risk premiums for network data insurance

MINNEAPOLIS, Minn. (Dec. 1, 2021) — CloudCover®, the company behind the CyberSafety CC/B1 Platform™, today announced the approval of their newest patent application for the invention of a cybersecurity insurance platform that utilizes a blockchain underwriting process (issued as U.S. Patent 11,223,647).

The patent covers a process combining cybersecurity insurance underwriting with blockchain recordkeeping. It represents a significant milestone in CloudCover’s mission: to create an end-to-end cybersecurity technology and insurance platform. It also complements the company’s network detection, automation and orchestration technology that empowers risk awareness, risk control, and risk transfer.

Behind the invention is CloudCover’s CC/B1 — a risk mitigation platform developed to secure the network so that data insurance is possible. The patented process describes embedding micro-insurance policies into digital transactions that are secured and recorded utilizing blockchain technology. While inspecting and stopping threats within an organization’s network, the CC/B1 uses statistical algorithms to analyze network traffic for the purpose of risk scoring and building actuarial models — models used to set and reset premiums.

The platform not only offers a company the ability to transfer the risk of their network’s security on demand, it also unlocks the company’s data value at risk by leveraging the premium’s incremental risk transfer function. This invention is designed to improve the underwriting accuracy and pricing of cybersecurity insurance within the growing cyber insurance ecosystem.

“Cybersecurity insurance as we know it is unsustainable — the cost of cybercrime is increasing, more claims are being filed, and premiums have skyrocketed as a result,” says Stephen Cardot, CEO and founder of CloudCover. “To be proactive in setting more accurate premiums, we need historical data in the form of actuarial tables — but according to the insurance underwriting industry, that’s unlikely to happen because the risk is so unpredictable. With this invention, CloudCover has proven that notion is incorrect — we’re able to identify risk, control it, score it, lay it off, and underwrite it at a granular level — removing the conventional barriers to real-time data insurance and solving a problem that has long plagued the cybersecurity insurance industry.”

Under the patented process, the incremental insurance of “data in motion” creates a permanent record of every micro-policy that is opened and closed. Each micro-insurance policy is automated on demand, and CloudCover notifies the policyholder and adjudicates the claim automatically. This is a departure from the typical cybersecurity insurance, in which a policyholder reactively alerts their insurance company of a breach.

CloudCover owns this patented underwriting process for incremental CyberSafety Network Data Insurance utilizing blockchain technology. The patent will play a key role in the company’s rollout of its upcoming insurance coverage offerings, which began with the announcement of a $1 Million Ransomware Warranty for organizations that sign on for a three-year contract with CloudCover’s CC/B1 Platform. CloudCover Cyber Liability (CCCL) and Information Systems Business Interruption (ISBI) insurance, which includes notification coverage, will be launched January 2022, with CloudCover Cybersecurity Network Data Insurance to follow in the first quarter of 2022.

The patent is part of CloudCover’s ongoing quest to Reimagine CyberSecurity, ensuring that organizations are aware of their level of cyber risk and have employed proactive steps to control it and transfer their risk through insurance. Organizations are encouraged to engage CloudCover’s CyberSafety Registry® that provides an enterprise compliance impact and governance risk “understanding” that is relevant to regulatory exposures of a company’s business sector, geography, and trade vertical. To learn more about the CC/B1 Platform or to request a demo, visit our demo page.

About CloudCover

CloudCover® is a cybersecurity platform that has reimagined cybersecurity into proactive, anticipatory CyberSafety — delivering extended network detection and response (X-NDR) through math-based security orchestration automated response (SOAR) for risk awareness and risk control. The SOAR system accumulates data between an organization’s diverse security technologies and environments and streamlines them for a holistic action on potential risks. Our CC/B1 Platform provides a protective security layer to your existing cybersecurity tech stack, detecting network threats and blocking them automatically. With CloudCover, the elusive “single pane of orchestration” capability of an organization’s network security isn’t a myth — it’s reality. CloudCover holds a U.S. patent covering its cyber-insurance underwriting process.