Insurer Coalition buys BinaryEdge security search engine to scan policyholders
BinaryEdge acquisition comes as insurers start hiking rates in response to spike in ransomware attacks
Cyber insurance provider Coalition has acquired BinaryEdge, a search engine that seeks out internet-exposed devices.
The acquisition was completed in October 2019, Coalition said, although it didn't disclose the financial details of the deal.
The insurance company is now integrating BinaryEdge's technology into its own cyber insurance and security offering, and offering policyholders BinaryEdge scans at no additional cost as part of their policies.
The added features will enable policyholders to map their internet attack surface and monitor threats in real-time. They will also be able to proactively fix vulnerabilities to stay ahead of their adversaries.
Not only that, they will also receive security alerts about any vulnerabilities found in their internet-exposed devices and will be guided on how to mitigate or update vulnerable systems.
Coalition said it is continuously monitoring more than 10,000 customers using BinaryEdge's technology, protecting both insured and the insurer at the same time.
"While most insurers only respond after an incident, Coalition is now uniquely positioned to provide organisations with the data and tools they need to prevent and mitigate losses before they occur," said Joshua Motta, CEO of Coalition.
While the BinaryEdge acquisition has been completed, it will continue to run as a standalone service.
Coalition says it may also offer customers lower prices for cyber insurance policies in the future, if the combination helps to cut claims.
The news comes amid reports that cyber insurance firms have started hiking insurance rates in response to the spike in ransomware. Indeed, rates have been jacked-up by as much as 25 per cent over the past year alone.
2019 was particularly challenging for cyber security insurers. Various ransomware operators were successful in hijacking computer systems and organisations in efforts to receive hefty payments.
While there were six per cent fewer ransomware incidents in 2019 compared to 2018, the attacks were more severe, according to Malwarebytes Labs.
By October 2019, a total of 621 public-sector organisations in the US had been subjected to serious ransomware attacks, according to security firm Emisoft.
On New Year's Eve, cyber criminals crippled the IT systems of foreign exchange giant Travelex with a ransomware attack, forcing the company to resort to manual processes, and leaving travellers across the world high-and-dry.
Hackers reportedly demanded $6 million from the company, although there is no information whether the company paid the ransom to hackers. Today, 24 days after the outbreak of the attack, the company's publicly facing systems remain down, even as it claimed last week that it is "making good progress" towards its recovery.