Really…what is CHECKLIGHT™?

 

Sera-Brynn CEO and Towne Insurance EVP explain the concept behind the insurance industry technology product.

We get asked this question all the time and thought addressing those inquiries via a “quick read” blogpost would be helpful.

(Emphasis on “quick” … so it should only take three minutes or so to read.)

Sera-Brynn is a Cyber Risk Management firm. Our focus has always been on helping clients address their cybersecurity risk. In recent years we have assisted small to large businesses in multiple market verticals (Financial, Commercial, Federal, DoD) and Federal and State Agencies with their mandatory cybersecurity compliance requirements, whether those be PCI, FedRAMP or NIST 800-171-related. It began to occur to us, however, that while compliance and the aspirational standards associated with it were very helpful at helping build trust among business partners and a foundation for best practice, it was but one dimension of a robust cyber risk management regimen.

After almost a decade of partnerships with members of the insurance industry, we’re beginning to better understand where compliance and technology intersect with financial risk, as well as the ways in which an organization’s sophistication and capital resources shape risk philosophy and appetite. It was with these sentiments in mind that I began my collaboration with Danny Plante, Executive Vice President at Towne Insurance. This blogpost, and others like it, are a consequence of our careers in technology and insurance, and the need to address the emergent and dynamic perils of the cyber landscape. CHECKLIGHT™ is a byproduct of our respective intellectual capital, and that of the talented individuals with whom we work.

Risk Management relates to the business decisions around risk identification, assumption, avoidance, and transfer. Until very recently, cyber risk management has had the benefit of comparatively little identification and avoidance. Rather, it has been almost entirely about assumption and transfer.

In other words, cyber insurers (facilitators of risk transfer) have generally not had the benefit of understanding the existence, imminence, or potential severity of exposures to which their prospective client insureds are exposed because field underwriting is best characterized as “the incompetent interviewing the delusional”… in other words, “under trained” insurance agents interviewing circumspect, over-confident IT professionals. The consequence has been risk finance solutions based upon poor information, and the high premiums, confusing coverage intent, and a dubious value proposition with which we are all too familiar.

We believe CHECKLIGHT will help shift this paradigm through technology that helps identify and avoid cyber risk. This will allow those with the capital to finance and receive transferred risk a higher probability of successful outcome. Those who underwrite cyber insurance will readily understand how the identification, quarantine, and elimination of a threat in real time will mitigate frequency and severity of loss, and materially enhance underwriting results.

So, enter Sera-Brynn’s partnership with the insurance community: CHECKLIGHT.

CHECKLIGHT™ is purpose built to address an unmet need in the insurance industry… proactive cybersecurity Risk Reduction.

CHECKLIGHT is a cybersecurity Risk Reduction product that comes with an insurance industry-backed $250,000 warranty.

The first of its kind, it unites A rated insurance company security and best in class machine-language-based breach awareness and notification technology to prevent breaches, ransomware, etc.… and other eventualities and consequential loss associated with cyber-crime (hence the Warranty if we miss something).

The performance Warranty is a big part of the service offering. The core CHECKLIGHT technology has been deployed to several US Government key agencies for years and maintains a phenomenal track record of identifying anomalies and preventing data breaches. That performance is what convinced our insurance partners to back its capability with a warranty as we deploy this to our private sector clientele.

CHECKLIGHT’s cost structure was built to complement cybersecurity-related insurance products. For roughly the cost of one cup of coffee monthly, CHECKLIGHT warrants your endpoint from cyber threats with a $250,000 guarantee.

Most, if not all, cyber liability and similar insurance products focus on what happens after a breach. (The horses have already left the barn, so to speak…heck… the barn is actually on fire by the time current cybersecurity programs identify an advanced persistent threat). We, and our insurance partners, believe a more proactive approach will transform this dynamic which until now was not possible, because neither the technology nor the collaboration existed.

Real time risk identification and avoidance measures are the future of Cyber Risk Management.  They are no different than an insurance company requiring the owner of a property covered for theft and vandalism to install a better security system. CHECKLIGHT is that security system, built by the insurance industry (and us), for the insurance industry.

So, we’ve come upon the three-minute mark. To summarize, CHECKLIGHT was built to address a specific need in the cybersecurity insurance market: Risk Reduction through identification, notification, and consequent avoidance of specific threats. CHECKLIGHT is unique in the industry as it backed by an AM Best’s “A” rated security and comes with a $250,000 warranty against breaches. This is, in essence, an insurance industry technology product delivered with a cost structure intended to benefit all parties, and most importantly, protect the end user and limit their financial damages.

Some FAQs:

Can MSPs / MSSPs use CHECKLIGHT™?

We get this a lot. Absolutely yes. Not only does CHECKLIGHT provide an additional level of technical and financial support to their clients, it also provides MSPs and MSSPs a single dashboard capability to monitor the holistic health, and required fixes, to their entire client base. It’s also a good source of referral-based revenue. And it’s ridiculously inexpensive.

Does CHECKLIGHT™ supplement current Cybersecurity Insurance product?

CHECKLIGHT is the long missing loss control element every insurance underwriter needs. Like any loss control measure, it will help reduce frequency and severity of loss, and influence the amount of premium needed to offset insured losses. The recourse created with the warranty supports subrogation action in the event it is appropriate.

Why do we call it CHECKLIGHT™?

 Because its purpose is the same as the Check Engine light on your car’s dashboard: there’s something specifically wrong and it needs to be fixed. Listening to that warning will save a lot of money later.

Ok…we’re not that imaginative.


 The authors:

Rob Hegedus is a founder and chief executive officer of Sera-Brynn.

Danny Plante is Executive Vice President at Towne Insurance.