Interview with Han Bing, founder and CEO of Yuanbao Technology: Promoting service model innovation with network security insurance, the future of the 100 billion blue ocean market can be expected

Per reporter: Yuan Yuan Per editor: Liao Dan

"With the rapid popularization of the Internet and the acceleration of digital transformation, the security risks facing cyberspace are becoming increasingly prominent, the scope of security incidents is expanding, and network and data security risks are not only related to the vital interests of citizens, but also involve the protection of key production factors in the development of the digital economy." The continued prosperity of the digital economy requires a cyberspace with high reliability and credibility. Han Bing, founder and CEO of Yuanbao Technology, said in an exclusive interview with the Daily Economic News reporter that with the emergence of data value, the risks associated with it will continue to increase.

Where there is a risk, there will be a management mechanism for passing on risks accordingly, so a new insurance product - network security insurance has gradually entered the eyes of enterprises and individuals. According to Han Bing, the inability to eliminate network and data security risks puts forward an urgent need for the risk transfer function of network security insurance from the root cause. Although China's network security insurance has just started, it is of great significance and broad prospects for the development of network security insurance in the context of digital economy.

Han Bing, founder and CEO of Yuanbao Technology Image source: Courtesy of the interviewee

The Global Risks Report (2020) released by the World Economic Forum points out that cyberspace security risks and geopolitical instability, global economic slowdown, fierce climate change, and increased global political and economic inequality are called the five major risks facing the world.

Han Bing introduced that frequent cyber attacks have brought huge losses and serious impacts, and preventing network security risks has received more and more attention from various countries.

The "Daily Economic News" reporter noted that in recent years, China's "Cybersecurity Law", "Data Security Law", "Personal Information Protection Law" and other laws and regulations have been promulgated, providing a legal basis for preventing and resolving risk challenges in the field of network security and data security.

In addition to the emphasis on cyber security at the macro level, enterprises and institutions have also paid more and more attention to cyber security risks in the past two years. "Network security incidents will have a greater impact on the business continuity of enterprises with high network dependence, such as business interruption, and may also leave a bad impression on customers with insufficient security protection capabilities due to network attack events, which in turn will affect the reputation of enterprises." Han Bing said that in the process of China's digital transformation, enterprises have an increasing demand for digital risk protection management. How to protect key digital assets and data from external threats and build a closed loop of risk management has been highly valued by enterprises.

As a new risk response method, cyber security insurance has been incorporated into their network risk management framework by more and more enterprises around the world.

"In China, this market area is still in the initial stage of exploration. With the continuous construction of network security, some institutions have accepted and recognized the inclusion of network security insurance into the overall security strategy, and have gradually begun to implement or prepare to implement the strategy to further improve the enterprise information security management system. Han Bing said.

This year, the Ministry of Industry and Information Technology issued the "Three-year Action Plan for the High-quality Development of the Network Security Industry (2021-2023) (Draft for Comments)", which clearly proposes to explore the development of network security insurance. Carry out pilot projects of network security insurance services in the fields of telecommunications and the Internet, industrial Internet, and Internet of Vehicles. Accelerate the guidance and formulation of network security insurance policies, monitor risk exposure through network security insurance services, encourage enterprises to build and improve their own network security risk management systems, and strengthen network security risk response capabilities.

This is undoubtedly a shot in the arm for the development of cyber security insurance. "At present, China has become one of the most developed countries in the global digital economy and network economy, and the demand for related insurance products will become more and more intense, and it is expected to become an emerging business field of 100 billion." Han Bing further explained that with the digital transformation of the industry, the expansion of the digital economy, and the improvement of network security awareness, the emerging field of network security insurance has received widespread attention from all walks of life, and all parties have actively explored in the formulation of laws and policies, insurance product development, and service model practices.

It is worth mentioning that network risks are mostly dynamic and changing, and the development of network security insurance requires network security technology paradigm innovation, so it puts forward high requirements for insurance companies in terms of modeling pricing and active risk management.

"Cybersecurity insurance products need to be deeply integrated with cyber security services to provide more proactive, early warning, real-time and dynamic security risk solutions while transferring risks." At present, whether foreign or domestic, large insurance institutions generally adopt the method of cooperating with third-party network security risk quantitative management companies to improve their professional underwriting and management capabilities. Han Bing said.

It is understood that Yuanbao Technology has developed a series of professional tools and solutions for the core pain points of network security insurance underwriting pricing difficulties, created the first network security risk automated assessment and management platform in China, and provided enterprises with full-process services such as risk quantitative assessment and analysis, risk sustainability monitoring and risk early warning management.

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