One of the most creative, and lucrative, criminal enterprises the world has ever seen is breaking into computer systems to steal or lock up valuable data, explains Jim Powell, international investing expert and editor of Global Changes & Opportunities Report.

The attacks disrupt businesses, shut IT systems down, cause physical damage, lead to large ransom demands, and create other serious problems.

As we’ve seen most recently with the SolarWinds and Colonial Pipeline cyber attacks, computer crime is on the rise and is becoming much more costly. Not surprisingly, businesses of every type want to take out insurance against cyber crime losses.

Unfortunately, business insurance companies don’t know how to price their cyber attack policies because they don’t know what their risks will be. It’s not like writing fire or hurricane insurance for which decades of data are available.

Insurance companies are protecting themselves by pricing their cyber policies very high — which limits their appeal. One company that provides the insurance industry with the cyber information it needs is Verisk Analytics.

The company’s Decision Analytics program develops models that forecast various threats and predicts the risks, potential losses, probable profits from policies, and other data its clients badly need. With the information that Verisk provides, insurers can write effective cyber security policies for its clients.

In addition to the cyber insurance industry, Verisk provides data for customers in several other sectors, including chemicals, mining, property & casualty insurers, finance, energy, environmental services, and healthcare.

The company draws on all its experience with evaluating risks to its cyber insurance evaluations. A new artificial intelligence program can create risk models its customers can use to forecast potential losses and determine how much insurance they should carry.

The new cyber insurance industry is already profitable, and should become even more so. Verisk is doing well in its unique industry, and should continue to prosper.

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