Trium Cyber, the authorised service company for Syndicate 1322 at Lloyd’s, has developed in collaboration with HITRUST, an innovative approach to more accurately quantify risk by combining actuarial science with third-party security certification.

Thanks to this collaboration, Trium will be able to provide greater cyber coverage at lower cost, the firm noted.

Using its new methodology, Trium Cyber and HITRUST have created a Consortium underwritten by certain underwriters at Lloyd’s, allowing them to offer $15 million in capacity, broad coverage and a wide range of endorsements.

The rigorous r2 security rating from HITRUST is key to the new synergistic insurance/assurance process. Companies with r2 certified applications or systems can bypass the traditional cyber insurance application process.

Notably, companies with the r2 rating have a breach rate of less than one percent, Triem explained.

“Blending actuarial science with third-party assessment enables us to take underwriting to the next level,” said Josh Ladeau, CEO of Trium Cyber. “Cyber insurance is still evolving, and data often lacks reliability and is thin. Utilizing the data that companies have already provided as part of the r2 assessment helps us to more deeply understand, and thereby more accurately underwrite, cyber risk.”

The Consortium at Lloyd’s currently only provides cyber coverage to companies with an r2 security rating. However, Trium’s internal True Risk Avoidance & Mitigation (TRAM) team members maintain HITRUST certifications to assist clients with maintaining or achieving their r2 rating.

According to the announcement, Trium plans to expand its offering to customers with HITRUST’s i1 (intermediate security) and e1 (essential security) certifications later this year.

Ladeau explained: “Until now, cyber insurance underwriters rely on a mixed bag of insurer applications, completed independently by prospective policyholders.

“It falls on the client to interpret and “accurately” respond to question sets that may be irrelevant or poorly worded, leading to inaccurate portrayal of security posture. However, HITRUST’s third-party assessment confirms highly reliable security procedures, verifies implementation and provides a means of measurement.”

HITRUST CEO, Daniel Nutkis added: “Our alliance with Trium Cyber marks a significant step forward in aligning cybersecurity assessment with real-world insurance underwriting. Our new approach provides assurance security status and offers greater understanding of client risks.”

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