This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

As Cyber Attacks Increase Cloud Insurance Emerges

By Juliette Fairley

NEW YORK ( MainStreet)--With cloud technology companies such as CloudArena raising $1.5 million in early stage funding, cloud computing is poised to become a leading industry in coming years.

CloudArena created HotelRunner, a cloud based property, online sales and digital marketing management platform for hotels and accommodations of all sizes.

Read: Do Cool Sh*t

"We are going to use this investment to enhance our productivity and increase the quality of our services to boost the sales and marketing competencies of our worldwide customers," said co-founder Arden Agopyan.

CloudArena is one of the many emerging companies that make up the cloud computing market, which is expected to grow to $241 billion in 2020, according to a study by Forrester Research called "Sizing the Cloud."

"Now that cloud computing is an established business and a high growth market, there needs to be risk transfer associated with it," said David Kimmel, CEO of CyberRiskPartners, parent company of CloudInsure.

Malicious or criminal attacks accounted for 41% of data breaches compared to 24% in 2009, according to the Ponemon Institute. About 1,611 breaches took place in 2012 up 48% from 2011.

"Small companies can be put out of business with a single cyber incident," Kimmel said.

Insurers have responded with a new product designed to protect the emerging cloud crowd. Liberty Insurance became the first primary insurance carrier to cover risk associated with cloud computing technologies. The resulting CloudInsure is the world's first insurance platform designed specifically to address emerging privacy and security risks within the cloud environment.

"Cloud computing offers significant benefits in cost savings, scalability and performance, but as underwriters, we have to be very alert to the dynamic risks that accompany it because both the law and technologies are changing rapidly," said Oliver Brew, vice president of Liberty Insurance's technology and privacy practice.

For example, President Barack Obama signed an executive order on February 12, 2013 directing federal agencies to consider new cyber-security mandates were possible under the law. "Data in the cloud is safe but it carries its own risk and challenges," Kimmel said. "Aggregating data from so many companies in one place creates an attractive opportunity for hackers. Insurers are grappling with quantifying these dynamics and risks."

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs