Cyber ratings fuelled by real-time industry classification – Relativity6 CEO Q&A

Alan Ringvald is the Chief Executive of Relativity6, a world leader in using original, accurate business data from the live web to generate real-time industry classification and business activity detection.

It was announced in May that AdvantageGo and Relativity6 are Ecosystem partners. Relativity6 provides a uniquely valuable perspective on cyber risk, available through AdvantageGo’s Underwriting Workbench, tailored to provide cyber underwriters with unparalleled data insights.

Here, Relativity6’s CEO Alan Ringvald, answers AdvantageGo’s questions on the transformative power of the firm’s insights.

What’s Relativity6’s ‘Elevator pitch’?

Relativity6 is a technology company that uses artificial intelligence to analyse businesses in real-time and accurately determine what they do – their true industry classification. Think of them as digital detectives, who scan through vast amounts of online data, to verify if a business that claims to be a bakery is really just a bakery, or if they’ve expanded into catering, wholesale, or other activities that could affect their risk profile.

When Relativity6 became an AdvantageGo Ecosystem partner, we talked about providing ‘present view’ of risk through the Underwriting Workbench: what does that view consist of?

The ‘present view’ provides underwriters with a real-time snapshot of a business’s actual operations and activities. This view includes:

• Current business activities verified through AI-powered web scanning
• Changes in business operations that might not be reflected in their original classification
• Additional revenue streams or services that could impact risk assessment.

Have incorrect industry classifications been an issue for pricing data and flagging of hazardous industries – and why cyber in particular?

Incorrect industry classifications have been a significant challenge for insurers, particularly in cyber insurance, for several reasons:

• Businesses often evolve faster than their classifications are updated
• Many companies operate in multiple industries but are classified under just one
• Traditional classification methods can’t keep pace with rapid digital transformation
• Cyber risks are especially fluid and can change dramatically based on a company’s actual operations.

For cyber insurance specifically, misclassification can be particularly problematic because:

• Different industries face vastly different types and levels of cyber threats
• The volume and sensitivity of data handled varies significantly by industry
• Security requirements and compliance standards differ across sectors
• Attack surfaces and potential damage scenarios vary widely by business type.

From a cyber underwriter’s perspective, what does having a real-time view of classifications enable them to do – and at which stages of the underwriting process?

Real-time classification capabilities empower cyber underwriters throughout the entire underwriting journey:

At Quote Stage:

• Quickly validate the declared industry classification
• Identify potential red flags or misrepresentations
• Apply accurate pricing models based on verified activities.

During Risk Assessment:

• Understand the full scope of a business’s operations
• Identify additional risk factors not captured in standard classifications
• Assess the true exposure based on actual business activities.

During Policy Writing:

• Create more precise coverage terms based on verified operations
• Include appropriate exclusions based on actual business activities
•  Set more accurate limits based on real risk exposure.

In Ongoing Monitoring and Renewals:

• Track changes in business operations that could affect risk profile
• Identify new activities that might require policy adjustments
• Flag significant operational changes that warrant reassessment.

This real-time visibility allows underwriters to make more informed decisions, price risks more accurately, and maintain a dynamic understanding of their portfolio exposure.