California based cyber security insurance company Cyence has raised $40m in venture funding led by New Enterprise Associates. Cyence provides software to insurers that can translate cyberthreats to dollars and probability, relying on models that involve human behavior and processes along with technology.
Cyence Chief Executive Arvind Parthasarathi said the company is building an economic risk model around cyberevents. The company has assembled a team of experts from the digital security industry as well as the insurance industry and in economic modeling. Mr. Parthasarathi said insurers realize cyber insurance presents them with a quandary. “On one hand it is a massive opportunity,” Mr. Parthasarathi said. “On the other hand, think about the trillions of dollars in exposure they’ve got in buildings, in factories, in pipelines and refineries sitting on their balance sheet that can suddenly be compromised by a cyberattack.” Mr. Parthasarathi says that Cyence takes a different approach than others in the sector have taken because too often cybersecurity is thought about in technology terms, when often vulnerabilities are the result of human mistakes.