Coalition Cyber Insurance 

Pioneering Active Insurance for the Digital Age

In an era where digital risks pose an ever-increasing threat to businesses of all sizes, Coalition has emerged as a groundbreaking force in the cyber insurance industry. Founded in 2017 by technology entrepreneurs Joshua Motta and John Hering, Coalition has redefined the approach to managing and mitigating cyber risk through its innovative Active Insurance model.

The Genesis and Growth of Coalition

Coalition was born from a simple yet powerful mission: to solve cyber risk for small and medium-sized businesses (SMBs). Recognizing the vulnerability of these organizations in the face of growing digital threats, Motta and Hering set out to create a solution combining comprehensive insurance coverage with proactive cybersecurity tools.

The company’s innovative approach quickly gained traction in the market. Within months of its launch in November 2017, Coalition secured $10 million in seed funding from leading technology investors, signaling strong confidence in its vision. This initial success was just the beginning of a remarkable growth trajectory. By July 2022, Coalition had raised over $755 million in equity funding and achieved a valuation of $5 billion, a testament to its rapid expansion and market impact.

Coalition’s financial performance has been equally impressive. As of July 2022, the company exceeded $775 million in run rate Gross Written Premium (GWP), with a nearly 200% increase in revenue growth over the prior year. These figures highlight Coalition’s rapid scaling and underscore the growing demand for its unique approach to cyber risk management.

Financial Strength and Strategic Partnerships

A key factor in Coalition’s success has been its strategic partnerships with some of the world’s leading insurers and reinsurers. These partnerships include industry giants such as Allianz Group, Arch Specialty Insurance Company, Ascot Group, Lloyd’s of London, Swiss Re Corporate Solutions, Vantage Risk Specialty Insurance Company, and Chaucer Insurance Company DAC. All of these partners boast high A.M. Best ratings, ranging from A to A+, which speaks to their financial stability and reliability.

These partnerships serve a dual purpose. First, they provide Coalition with the financial backing to offer robust insurance products with significant capacity. Second, they lend credibility to Coalition’s innovative approach, validating its model in the eyes of potential clients and investors alike.

Technological Innovation at the Core

Coalition’s deep integration of advanced technology into every aspect of its operations sets it apart in the cyber insurance landscape. Coalition Control, an AI-powered risk management platform, is at the heart of this technological ecosystem. This platform offers comprehensive attack surface monitoring, risk assessment and impact analysis, and step-by-step remediation guidance. By providing these tools to its clients, Coalition empowers businesses to proactively manage their cyber risks.

Supporting Coalition Control is the Active Data Graph, a sophisticated artificial intelligence system that collects and analyzes data across the public and dark web. This provides a comprehensive picture of cyber risk, allowing for more accurate risk assessment and targeted mitigation strategies.

The company’s commitment to technological innovation is further exemplified by Coalition AI, which integrates with Coalition Control to enhance threat detection, assessment, and mitigation capabilities. This AI-driven approach allows Coalition to stay ahead of emerging cyber threats and provide its clients with cutting-edge protection.

A Holistic Approach to Cyber Risk Management

Coalition’s offerings extend beyond technology. Through its Security Labs division, the company maintains an in-house team of security experts. This team of researchers, threat analysts, and incident responders provides an additional layer of expertise and support to Coalition’s clients.

Coalition offers Managed Detection & Response (MDR) services for businesses requiring more intensive security monitoring. This service provides around-the-clock monitoring of network environments, ensuring rapid response to potential threats.

Comprehensive Insurance Products

Coalition’s insurance offerings are designed to address a wide range of digital risks modern businesses face. Its flagship product, Active Cyber Insurance, provides comprehensive coverage for cyber risks, including breach response costs, business interruption, and cyber extortion.

Recognizing its clients’ diverse needs, Coalition also offers Active Tech E&O coverage for claims arising from technology services or products, Executive Risks coverage, including Directors & Officers (D&O) and Employment Practices Liability (EPL), Excess Cyber Coverage for additional layers of protection, and Miscellaneous Professional Liability coverage for professional services-related risks.

The Active Insurance Advantage

Coalition’s Active Insurance approach represents a paradigm shift in the cyber insurance industry. Unlike traditional insurers that rely on point-in-time assessments and historical data, Coalition provides continuous monitoring and real-time risk assessments. This allows for more accurate underwriting and enables clients to address potential vulnerabilities before they can be exploited.

The company’s proactive stance extends to its claims process as well. Coalition boasts an average 5-minute response time to cyber incidents, ensuring that clients receive rapid support when they need it most. This quick response can be crucial in mitigating the impact of a cyber-attack.

Coalition’s policies offer coverage of up to $15 million for financial, tangible, and intangible damage, providing comprehensive protection for businesses. Moreover, the company offers integrated support throughout the insurance life cycle, from quoting and binding to claims and renewal, ensuring a seamless experience for its clients.

Global Expansion

While Coalition began its operations in the United States, it has since expanded its reach to include the United Kingdom, Australia, Canada, and Germany. This global presence allows Coalition to serve a diverse range of clients and adapt its offerings to meet different markets’ specific needs and regulatory requirements.

Redefining Cyber Risk Management

In conclusion, Coalition has established itself as a pioneer in the cyber insurance industry through its innovative Active Insurance model. By combining comprehensive insurance coverage with proactive cybersecurity tools and leveraging advanced technology, Coalition offers a unique and effective approach to managing digital risks.

As businesses continue to face evolving cyber threats, Coalition’s data-driven, proactive approach to risk management positions it as a leader in the industry. Its rapid growth, substantial financial backing, and commitment to technological innovation suggest that Coalition is well-positioned to continue shaping the future of cyber insurance and risk management in the digital age.

This description provides general information on cyber insurance and does not cover all specifics; actual coverage will depend on the terms of your individual policy.