The insurance industry has a role to play beyond financial loss indemnity and recovery. Will organizations, incentivized by ROI for their insurance program, increasingly look to their insurers to manage risk rather than the cybersecurity industry?
Arceo.ai Launches to Bridge the Cybersecurity - Insurance Gap
Veterans from Both Industries Join Advisory Board to Drive
New Model for Cyber Resilience
San Francisco, Calif.– February 20, 2019 – Arceo.ai, the industry-first provider of cyber resilience solutions, today emerged from stealth with the debut of a unique platform that enables insurance carriers to automate and enhance their cyber insurance solutions, while increasing the security of their insureds.
Cyber resilience is the combination of risk mitigation and accelerated recovery to reduce the total impact of a cyber incident. Whereas cybersecurity stops or limits the scope of an attack, cyber insurance addresses financial loss and recovery costs. Bridging the insurance and cybersecurity worlds is a critical aspect of enabling the cyber insurance market to grow.
Arceo enables insurance carriers to handle cyber insurance policy quoting at scale and serve small-and-medium-size enterprises (SMEs), the fastest growing cyber insurance segment which represents 90% of new buyers according to a survey from Advisen. Arceo’s own research shows that cyber incidents impact SMEs severely with a financial loss averaging 3.4 percent of revenue versus 0.05% for the overall market. The Arceo platform scales SME policy management with a transparent modeling process that enhances underwriting, accelerates quoting, and provides insureds with actionable technical cyber resilience guidance.
“Cyber incidents are one of the most important risks facing businesses. For the insurance industry, this represents a significant, but challenging opportunity for growth,” offered Raj Shah CEO of Arceo.ai. “Our combined team of security and insurance practitioners has enabled us to build a platform for the insurance industry to create and deliver meaningful cyber resilience solutions for their customers.”
Arceo has brought together a team of data scientists, cybersecurity engineers, and cyber insurance experts along with experienced advisors and investors.
The Arceo Founding Team
CEO, Raj Shah, was most recently managing partner of the Pentagon Defense Innovation Unit Experimental (DIUx) in Silicon Valley. Prior to DIUx, Raj was CEO of Morta Security, a startup acquired by Palo Alto Networks. He began his career as an F-16 pilot in the U.S. Air Force.
President, and CTO, Vishaal “V8” Hariprasad previously stood up the Cyber Threat Alliance at Palo Alto Networks after the acquisition of Morta Security where he was a co-founder. V8 served as a Cyber Operations Officer in the U.S. Air Force and the NSA with multiple overseas deployments and is a graduate of the Air Force Academy.
Ben Beeson, a widely respected thought leader in the cyber insurance market, also joined the Arceo team as a founding member and Head of Sales. Prior to Arceo, Ben was leading Lockton’s cyber risk practice. He brings 20 years of experience in the insurance industry to the team.
Davis Hake is responsible for Customer Engagement and Marketing at Arceo. Davis most recently was Director of Cybersecurity Strategy at Palo Alto Networks and held positions in the Federal Government, including the National Security Council of the White House, the Department of Homeland Security, and the U.S. House of Representatives.
Matthew Hall leads sales engineering, providing innovative solutions to Arceo customers. Matthew has deep experience in enterprise security and was on the founding team at Morta Security.
The Arceo Advisory Board
Arceo is expanding its Advisory Board to include Gary Harbison, Sir Iain Lobban, Hemant H. Shah, Dr. Elizabeth Sherwood-Randall, and Mario P. Vitale. Together they bring a wealth of expertise from both the cybersecurity and insurance worlds:
Gary Harbison, currently the Global Chief Information Security Officer of Bayer, is a proven security leader with over 19 years of experience in the Information Security domain including roles at multiple global fortune 500 companies, as well as public sector experience with the US Department of Defense. Gary has a track record of developing security and risk management programs built to evolve with changing business needs and evolving threats.
“The level of sophistication of evolving cyberattacks facing companies today continues to be a challenge for much of the private sector,” commented Harbison. “Arceo’s new model of cyber resilience is an exciting way to address cyber risk holistically while sharing learnings from cyber risk investment and analytics across a range of companies.”
Sir Iain Lobban is the former director of the UK’s largest intelligence and security agency, Government Communications Headquarters (GCHQ). The last ten years of his career were characterized by the integration of intelligence and security in counter-terrorism operations, cyber defense, and support to the military campaigns in Iraq, Afghanistan and Libya.
“The role of intelligence is to reduce the gap between ignorance and knowledge: analytics make all the difference,” commented Sir Iain. “Arceo’s strategy of bringing data science to bear on the worlds of cyber risk mitigation and cyber risk transfer can be a game-changer in building real cyber resilience for businesses and our critical infrastructure.”
Hemant H. Shah co-founded Risk Management Solutions, Inc. and served as its CEO until March 2018. Mr. Shah is currently the Co-Founder and CEO of Archipelago Analytics, Inc. He has been instrumental in the insurance industry’s adoption of data and science-driven modeling, from underwriting through capital management, and has advised hundreds of insurers, reinsurers, and financial institutions throughout the global market.
“The risks that truly matter are increasingly tied to the digital assets, networks, and inter-connected systems that define our modern economy,” commented Shah. “At the heart of Arceo’s strategy are solutions that make cyber-related insurance coverage more relevant, accessible and vital, enabling the growth of the market and more resiliency for all.”
Dr. Elizabeth Sherwood-Randall has served in multiple senior U.S. national security roles at the White House, the Pentagon and, most recently, as Deputy Secretary of the Department of Energy, where she spearheaded a major initiative with North American utility leaders to tackle emerging cyber and physical challenges to the American power grid. She is currently a Distinguished Professor at the Georgia Institute of Technology and a Senior Fellow at the Harvard Kennedy School Belfer Center for Science and International Affairs.
“Cyber threats are on the rise, and U.S. critical infrastructure is in the sight lines of our adversaries. We need to build a national ecosystem that rallies the full strengths of our nation to tackle this growing challenge,” commented Dr. Sherwood-Randall. “Arceo is pioneering a model that will meet escalating needs across multiple sectors of the economy. I look forward to working with Raj, V8 and their experienced team to develop a full suite of options for customers who seek to raise their cybersecurity and acquire insurance against cyber risks.”
Mario P. Vitale is the CEO of Vitality Risk providing consulting services to the insurance industry and private equity investors. Prior to this role he served as the CEO of Aspen Insurance, a leading specialty insurer, the CEO of Zurich Insurance Group’s Global Corporate business in North America and was CEO of Willis Towers Watson. Currently, he serves as Director of WNS Holdings, on the Board of Directors at Board Street Partners, and as a member of the Board of Trustees at St. John’s University.
“Having built insurance companies from the ground up, I believe the insurance industry is at its best when it embraces technology to meet evolving market needs,” commented Vitale. “The cyber insurance market is only just beginning to understand its potential and I’m excited about Arceo’s unique position to not just enhance underwriting of risk, but also deliver value back to the insureds.”
Arceo will present its innovative solution at the Advisen Cyber Risk Insights Conference taking place in San Francisco on February 20-21 where President and CTO Vishaal Hariprasad will be providing the keynote with Dr. Elizabeth Sherwood-Randall.
Arceo.ai is bridging the gap between cyber insurance and cybersecurity with advanced risk analytics. The Arceo platform enables insurance carriers and brokers to scale distribution of cyber insurance while reducing cyber risks for their insureds. Based in San Francisco, California, Arceo was founded in 2016 by U.S. intelligence veterans, data scientists, and cyber insurance specialists with funding from Lightspeed Venture Partners and CRV. For more information, visit www.arceo.ai
Lauren Ames for Arceo.ai
They say that culture eats strategy for breakfast. Nowhere is the power of that statement truer than at an early stage start-up. Over the last year, Arceo.ai has been quietly building a world-class team of distinguished data scientists, software engineers, business leaders, and cybersecurity veterans to solve one of our economy’s toughest problems: How does small business protect itself against cyber-attacks as the attacks increase in frequency, scope, and damages?
Arceo believes the solution is not in prevention but rather in cyber resilience. It’s ambitious, we know. And we’re up to the challenge!
Arceo was founded by four cybersecurity veterans who believe that cybersecurity as we know it today is broken. Our team is comprised of recognized industry experts with diverse backgrounds and talent--each with the commitment to solving this urgent problem and making an impact.
In order for Arceo to grow strategically from the founders’ intentions, we remain laser-focused on company culture to ensure our core values serve as a foundation for hiring, decision-making, and strategy. The three core values include:
· Humility, and
And each of these values is integrated into everything we do as a company.
So why is culture so critical to our business strategy?
Because we believe that good leaders make plans and communicate to their teams, but great leaders empower others to lead. Arceo’s culture allows us to move quickly, act responsibly, and produce results.
Today, we see that how we interact internally as a team translates to our customer and partner relationships. And while, individually, each member of the Arceo team brings decades of experience the company, collectively we provide the strategic direction needed for our insurance partners to grow their small- and medium-sized enterprise (SME) market book of business.
Arceo is delivering insights and understanding above and beyond what the market is delivering today, at the threshold of a cybersecurity revolution. Join Us.
For decades, we have been fighting the cybersecurity battle with an analog mindset. We have invested billions of dollars and millions of man-hours trying to create higher fences, deeper moats, and smarter guards. But, new vulnerabilities will always be found in our digital infrastructure and humans will continue to exploit them. The damage will continue to rise in costs of both resources and fundamental trust in our digital society as the economics of the problem continue to favor the attacker.
The White House Council of Economic Advisors nailed this economic challenge in their 2018 report on the cost of cyber attacks to the US economy.
Cybersecurity is a common good; lax cybersecurity imposes negative externalities on other economic entities and on private citizens. Failure to account for these negative externalities results in underinvestment in cybersecurity by the private sector relative to the socially optimal level of investment. Cyber attacks against critical infrastructure sectors could be highly damaging to the U.S. economy.
-CEA Report: The Cost of Malicious Cyber Activity to the U.S. Economy
Not only is cybersecurity a “common good” problem, but its a big one, costing the U.S. up to $109 billion in 2016. We believe it’s time to rethink our strategy and evolve from cybersecurity to cyber resilience.
As cyber risks continue to grow in complexity, success in the future will depend on a business's ability to craft a cyber resiliency strategy that combines world-class prevention capabilities with insurance coverage to enable a speedy recovery. Economic analysis of flood insurance affects after hurricane Katrina, showed that houses with insurance were 37% more likely to be rebuilt than those without insurance. As a cyber first responder myself working with Homeland Security and the White House, I can validate that positioning resources ahead of a disaster is critical to getting operations and lives rebuilt after a catastrophe.
It is with this mindset that we created Arceo.ai.
We believe that by helping insurance companies harness their data using better tools and analytics, they can drive better security decisions and resilience among their customers. The key to solving this problem is the ability to sift through trillions of data points to understand and eventually predict the effect of cyber attacks on organizations and industries. This understanding and prediction can then be able to tune investments in security to mitigate the greatest loss for a specific businesses size, industry, and risk profile. A holistic to cyber resilience.
This is an audacious goal, so we have built a team of cybersecurity and insurance experts with deep insights and knowledge that we are pairing with some of the brightest data scientists in the industry to attack this problem.
Join us and be part of the solution.
-Davis Hake, Co-Founder