Platform Will Provide Insurance Carriers and Brokers an Efficient and Effective Data-Driven Approach to Write Cyber Insurance
Arceo.ai, provider of the leading end-to-end cyber risk analytics and insurance platform, announced it has secured $37 million in overall funding. The funding was led by Lightspeed Venture Partners and Founders Fund with participation from CRV and UL Ventures. In addition, Hemant Shah, founder and former CEO of RMS, the world’s leading catastrophe risk modeling company, has joined Arceo’s Board of Directors. The funding follows the patenting of Arceo’s ability to blend cybersecurity data with innovative underwriting strategies. Founded in 2016, the company enables insurance providers to scale their cyber line of business using curated security data for accuracy, AI for advanced risk assessment, and workflow automation for efficiency.
Cyber risks are continuously morphing, and the insurance market must respond in kind with policies to address the growing threat of cyber attacks. Arceo has developed the critical ability to translate raw security data into insurance knowledge. This is accomplished by analyzing an individual enterprise’s security posture as well as the macro cyber risk trends. With deep experience in cybersecurity and insurance, Arceo keeps these translations current in a dynamic threat environment.
Despite worldwide security spending forecasted to exceed $124 billion, continued high profile breaches show that no amount of spending on security technology will guarantee protection. Insurance is becoming a key part of many enterprises’ security stacks. This demand must drive a renewed approach to cyber risk management that includes innovative, data-driven insurance policies to effectively transfer this fluid risk.
“We founded Arceo to create a new framework to solve cyber risk. By blending cybersecurity, threat intelligence, and insurance into one platform, we believe we can unlock new solutions to make companies quantifiably more secure,” said Vishaal Hariprasad, CEO of Arceo.ai. “Our company’s name in Latin means ‘clearly seeing risks ahead of you.’ Our platform will enable companies to effectively mitigate the constant threat of cyber attacks.”
“Arceo’s founders bring a unique set of enterprise and military expertise to tackle an increasingly global threat – cybersecurity,” said Arif Janmohamed, partner at Lightspeed Venture Partners. “Addressing the security risks that organizations face today needs the kind of defense mindset and technology expertise that the Arceo team is bringing to the market to deliver a modern and end-to-end cyber insurance platform.”
“Assessing risk in the security world is not about looking at a single point in time; there needs to be a constant examination that informs insurers and their clients about emerging risks,” said Trae Stephens, Partner at Founders Fund. “Fortunately, the data that Arceo is analyzing gives insurers and their clients the opportunity to proactively prepare for incidents through risk mitigation and risk transfer.”
“Insurance providers and enterprises need to incorporate best practices to evaluate and measure cyber risks,” said Ravi Mulugu, Senior Investment Director at UL Ventures. “We are thrilled to be partnering with Arceo, lending UL’s expertise to improve cybersecurity assessment for the insurance market.”