By fostering collaborations with emerging cyber-tech start-ups, the company aims to strengthen its position in the evolving cyber risk landscape.
Currently, about 25% of QBE Ventures’ portfolio consists of investments in early-stage companies with advanced cybersecurity technologies. This focus aligns with QBE’s broader strategy of building a comprehensive cyber ecosystem to support its clients and meet the growing demand for innovative cyber risk solutions.
QBE’s latest report, “Connected Business: Digital Dependency Fuelling Risk,” forecasts a sharp increase in global cyberattacks, with incidents projected to double by the end of 2024.
Strategic cyberattacks, such as those that disrupt critical infrastructure or cause widespread economic harm, are expected to rise from 103 incidents in 2020 to over 200 by 2024.
The report underscored the economic impact of major cyber events, citing examples like the NotPetya malware attack, which caused US$10 billion in damages across multiple continents. It also highlighted gaps in preparedness: more than a third of businesses surveyed lack incident response plans, and nearly half do not have cyber insurance coverage.
James Orchard, CEO of QBE Ventures, explained the role of strategic partnerships in advancing the company’s cyber insurance initiatives.
“A key focus for the QBE Ventures team is to seek out early-stage start-ups and investment opportunities where there is the potential to partner during the build process to solve insurance industry challenges and capitalise on new opportunities,” he said.
He noted that the dynamic nature of cyber risks makes it essential to continuously evolve products and services in partnership with innovative technology providers.
“Cyber insurance is a product with a constantly changing risk landscape, and we see a critical role for start-ups to partner with insurers to keep iterating and building for the future,” Orchard said.
QBE global head of cyber Serene Davis emphasised the importance of addressing cyber risks across entire organisations, rather than limiting efforts to IT departments.
“Traditional cyber insurance often focused on tools that sat within dedicated cyber teams; however, today, we know that cyber threats are a company-wide challenge. Business leaders from across an organisation need access to appropriate tools to reduce the severity of cyber incidents and ensure operations can continue,” she said.
In mid-2023, QBE introduced “QCyberProtect,” its first unified cyber insurance product, across its global markets. The policy is tailored to cover both current and emerging cyber threats and is supported by expert risk management resources and technology partnerships.
Collaborations with firms such as CYGNVS, illuminr, and Converge provide tools to help policyholders predict, prevent, and respond to cyberattacks effectively.
