The Rise of Cyber Risk Transfer in Small Businesses
Cyber risk has become an increasingly significant issue for small companies worldwide. While many businesses attempt to mitigate and avoid cyber risks, they rarely discuss transferring those risks to a third party. This is where Stoïk comes in – a French startup that has created a cybersecurity insurance product specifically designed for small- and medium-sized enterprises (SMBs). The company recently raised €25 million in Series B funding.
Stoïk’s Cybersecurity Insurance Product
Stoïk’s product offers coverage against cyber-related claims, including loss of revenue due to a cyber incident. If a business needs to halt production or temporarily close due to a cyber attack, Stoïk can compensate for the lost revenue (gross operating margin) during that period. The company currently covers businesses with an annual turnover of €750 million or less and offers coverage limits of €7.5 million.
Expansion into European Markets
Stoïk operates in France, Germany, and Austria. However, the startup’s focus is on expanding its presence in Europe, with plans to enter a new country every year starting from 2024 or 2025. The company aims to have 5,000 policyholders by the end of 2024 and currently represents €25 million in premiums.
Unique Selling Proposition
Stoïk’s approach differs from other insurance companies. The startup offers more than just cybersecurity insurance; it also provides customers with a risk assessment and recommendations for improving their security posture. When customers sign up, they receive an overview of their cyber risk exposure. Stoïk monitors DNS records and scans online databases for password leaks associated with the customer’s domain name.
Addressing Cybersecurity Challenges
Stoïk’s CEO believes that traditional insurance companies are not equipped to handle the complexities of cybersecurity risks. The company aims to bridge this gap by providing a comprehensive solution that includes risk assessment, recommendations, and insurance coverage.
Funding and Growth Plans
The €25 million Series B funding will be used to support Stoïk’s growth plans in Europe. The startup intends to expand its team and invest in marketing efforts to increase awareness of its product among SMBs.
Conclusion
Stoïk’s cybersecurity insurance product offers a unique solution for small businesses looking to mitigate cyber risks. By providing both risk assessment and insurance coverage, the company addresses the complexities of cybersecurity threats. With expansion plans into European markets and a growing team, Stoïk is poised to become a significant player in the cybersecurity insurance industry.
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