{"id":9268,"date":"2024-11-27T10:40:56","date_gmt":"2024-11-27T10:40:56","guid":{"rendered":""},"modified":"2025-04-22T04:43:23","modified_gmt":"2025-04-22T04:43:23","slug":"importance-of-real-time-industry-classification-in-cyber-ratings","status":"publish","type":"post","link":"https:\/\/www.advantagego.com\/en-us\/content\/importance-of-real-time-industry-classification-in-cyber-ratings\/","title":{"rendered":"Cyber ratings fuelled by real-time industry classification &#8211; Relativity6 CEO Q&amp;A"},"content":{"rendered":"\n<p><strong>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.<\/strong><\/p>\n\n\n\n<p>It was announced in May that AdvantageGo and Relativity6 are <a href=\"https:\/\/www.advantagego.com\/en-us\/content\/advantagego-and-relativity6-announce-strategic-ecosystem-alliance\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.advantagego.com\/en-us\/content\/advantagego-and-relativity6-announce-strategic-ecosystem-alliance\/\" rel=\"noreferrer noopener\">Ecosystem partners<\/a>. Relativity6 provides a uniquely valuable perspective on cyber risk, available through AdvantageGo\u2019s Underwriting Workbench, tailored to provide cyber underwriters with unparalleled data insights.<\/p>\n\n\n\n<p>Here, Relativity6&#8217;s CEO Alan Ringvald, answers AdvantageGo\u2019s questions on the transformative power of the firm\u2019s insights.<\/p>\n\n\n\n<p><strong>What\u2019s Relativity6\u2019s \u2018Elevator pitch\u2019?<\/strong><\/p>\n\n\n\n<p>Relativity6 is a technology company that uses artificial intelligence to analyse businesses in real-time and accurately determine what they do \u2013 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&#8217;ve expanded into catering, wholesale, or other activities that could affect their risk profile.<\/p>\n\n\n\n<p><strong>When Relativity6 became an AdvantageGo Ecosystem partner, we talked about providing &#8216;present view&#8217; of risk through the Underwriting Workbench: what does that view consist of?<\/strong><\/p>\n\n\n\n<p>The &#8216;present view&#8217; provides underwriters with a real-time snapshot of a business&#8217;s actual operations and activities. This view includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Current business activities verified through AI-powered web scanning<\/li>\n\n\n\n<li>Changes in business operations that might not be reflected in their original classification<\/li>\n\n\n\n<li>Additional revenue streams or services that could impact risk assessment.<\/li>\n<\/ul>\n\n\n\n<p><strong>Have incorrect industry classifications been an issue for pricing data and flagging of hazardous industries \u2013 and why cyber in particular?<\/strong><\/p>\n\n\n\n<p>Incorrect industry classifications have been a significant challenge for insurers, particularly in cyber insurance, for several reasons:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Businesses often evolve faster than their classifications are updated<\/li>\n\n\n\n<li>Many companies operate in multiple industries but are classified under just one<\/li>\n\n\n\n<li>Traditional classification methods can&#8217;t keep pace with rapid digital transformation<\/li>\n\n\n\n<li>Cyber risks are especially fluid and can change dramatically based on a company&#8217;s actual operations.<\/li>\n<\/ul>\n\n\n\n<p>For cyber insurance specifically, misclassification can be particularly problematic because:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Different industries face vastly different types and levels of cyber threats<\/li>\n\n\n\n<li>The volume and sensitivity of data handled varies significantly by industry<\/li>\n\n\n\n<li>Security requirements and compliance standards differ across sectors<\/li>\n\n\n\n<li>Attack surfaces and potential damage scenarios vary widely by business type.<\/li>\n<\/ul>\n\n\n\n<p><strong>From a cyber underwriter&#8217;s perspective, what does having a real-time view of classifications enable them to do \u2013 and at which stages of the underwriting process?<\/strong><\/p>\n\n\n\n<p>Real-time classification capabilities empower cyber underwriters throughout the entire underwriting journey:<\/p>\n\n\n\n<p>At Quote Stage:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Quickly validate the declared industry classification<\/li>\n\n\n\n<li>Identify potential red flags or misrepresentations<\/li>\n\n\n\n<li>Apply accurate pricing models based on verified activities.<\/li>\n<\/ul>\n\n\n\n<p>During Risk Assessment:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understand the full scope of a business&#8217;s operations<\/li>\n\n\n\n<li>Identify additional risk factors not captured in standard classifications<\/li>\n\n\n\n<li>Assess the true exposure based on actual business activities.<\/li>\n<\/ul>\n\n\n\n<p>During Policy Writing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create more precise coverage terms based on verified operations<\/li>\n\n\n\n<li>Include appropriate exclusions based on actual business activities<\/li>\n\n\n\n<li>&nbsp;Set more accurate limits based on real risk exposure.<\/li>\n<\/ul>\n\n\n\n<p>In Ongoing Monitoring and Renewals:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Track changes in business operations that could affect risk profile<\/li>\n\n\n\n<li>Identify new activities that might require policy adjustments<\/li>\n\n\n\n<li>Flag significant operational changes that warrant reassessment.<\/li>\n<\/ul>\n\n\n\n<p>This real-time visibility allows underwriters to make more informed decisions, price risks more accurately, and maintain a dynamic understanding of their portfolio exposure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s Underwriting [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9194,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[7,26],"tags":[25,14],"line-of-business":[24],"class_list":["post-9268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-latest-insights","tag-ecosystem","tag-underwriting-workbench","line-of-business-cyber"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/9268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/comments?post=9268"}],"version-history":[{"count":0,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/9268\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media\/9194"}],"wp:attachment":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media?parent=9268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/categories?post=9268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/tags?post=9268"},{"taxonomy":"line-of-business","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/line-of-business?post=9268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}