Lloyd’s, the insurance and reinsurance marketplace, has invested in BreachBits, a company specialising in cyber hacking innovations.
The financial terms of the investment remain undisclosed.
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The investment follows BreachBits’ successful co-development project during Lloyd’s Lab cohort 13, which took place between September and December 2024.
BreachBits, founded by former US military cyber warfare veterans, focuses on developing cyber hacking technology.
It has co-developed two products specifically for the Lloyd’s market: The Cyber Questionnaire Validator and Cyber Pre-Claim Intervention.
According to BreachBits, these automated tools are designed to improve the “efficiency and accuracy” of cyber risk underwriting while “enhancing” profitability for insurance carriers and brokers.
The products aim to address key challenges in the market such as the demand for faster policy issuance and more effective active risk management and intervention.
Both products are powered by BreachRisk a.i., which BreachBits describes as a “mature” backend system.
Since 2020, the technology has conducted more than 50,000 hacker assessments and can reportedly detect, verify and test over 95% of actual attacker pathways identified in the Verizon 2024 Data Breach Investigations Report (DBIR), offering what the company refers to as a hacker’s view of cyber risk.
During the Lloyd’s Lab accelerator, BreachBits piloted its technology with key carriers and brokers.
The Cyber Questionnaire Validator was found to potentially reduce underwriting time and improve risk selection, while the Cyber Pre-Claim Intervention showed potential in enabling insurers to proactively manage cyber incidents.
This is Lloyd’s third investment in a Lloyd’s Lab alumnus, an accelerator programme focused on product development in the insurance space.
Rosie Denée, head of innovation, commercial education and engagement at Lloyd’s, stated: “BreachBits is revolutionising cyber risk assessment by providing insurers with key visibility into their clients’ security posture. Their time in the Lloyd’s Lab helped refine their approach from concept to market-ready solution, demonstrating exceptional results during pilot testing.
“We are proud to support their continued growth through this investment – strengthening data-driven cyber solutions that enable our market to underwrite with greater confidence and precision.”
BreachBits is headquartered in Greater Washington, DC, with additional offices in Annapolis, Minneapolis and Little Rock.
