DynaRisk Raises $4.7 Million for Cyber Risk Management Solutions for Insurance Sector

London-based DynaRisk has raised $4.7 million in a funding round to accelerate product innovation and fuel the international expansion of its cyber risk management solutions for the insurance sector.

The company plans to use the new funding to help expand its operations across the Europe, Middle East and Africa (EMEA), North America and Asia-Pacific regions, it said in a Monday (July 28) press release.

DynaRisk was founded in 2016 to provide the insurance industry with accessible cybersecurity solutions for individuals, families, and small and medium-sized businesses (SMBs), according to the release.

The company helps the insurance industry protect policyholders with threat intelligence-backed risk management and underwriting software as well as cyber incident response services, DynaRisk CEO Andrew Martin said in the release.

When embedded into insurance offerings, these cyber-risk solutions help insurance industry professionals enhance their premiums, underwriting and policyholder engagement while reducing claims and loss ratios, per the release.

DynaRisk currently supports more than 25 insurance customers worldwide that cover about 2.4 million consumers and 800,000 SMBs, according to the release.

“Brokers, [managing general agents (MGAs)] and (re)insurers are rushing to tap the fast-growing cyber insurance market as cyber risk is now one of the most pressing challenges for consumers and [SMBs] globally,” Martin said.

Matt Gordon-Smith, investment director at YFM Equity Partners, which led the funding round, said in the release that DynaRisk serves “one of the fastest-growing segments of the insurance market.”

“With cyber threats escalating and insurers and brokers under pressure to add more value to their policyholders, DynaRisk’s embedded intelligence platforms and services are ideally positioned,” Gordon-Smith said.

Small businesses are increasingly targeted by cybercriminals and bad actors due to their often-limited security measures and resources, PYMNTS reported in April 2024.

The labor, time and resource lift of establishing an effective deterrent to fraudsters is frequently out of reach to small businesses. At the same time, the risks for merchants multiply as transactions increasingly move online, and these businesses can easily go out of business after suffering just a couple of fraud instances.

In another, separate development, Mastercard said in May that it launched a suite of financial and cybersecurity tools, data and educational resources designed for SMBs in the U.S.