October 11th, 2015

BRIDGING THE GAP BETWEEN INSURANCE AND CYBERSECURITY

Dignitas : Our Team

Chris Felder Cornell University

MBA ‘16

Debbie Feng Cornell University

MBA ‘16

Shayra Kamal Cornell University

BS, Information Science ‘18

Lucy He Cornell University

BS, Information Science ‘16

Tom Greco Fordham University

BA, Communication ‘14

Sean Pitterson Cornell University

BS, Information Science ‘17

Ebere Joseph Cornell University

BS, Information Science ‘18

2 Industry Product Mission

Business Model

Pricing Strategy Case Study Pricing

Strategy Scalability

3 Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

The IT Security Behemoth

• $77B in 2015 à $170B by 2020 [Gartner, 2015] • $101B will be spent worldwide on information security

services by 2018 • 10% industry growth rate, with vendor to end-user

deals on the rise

Rapidly Growing Industry

• 69% growth in mobile data traffic during 2014 • Annual IP traffic to surpass 1 zettabyte by 2016 (66

times the IP traffic of 2005)

Data Never Sleeps

• Preventing attacks in changing data breach landscape • Assessing liability in the event of a breach • Poor awareness of the need for cyber security among

startups and midsized companies

Pain Points

Recent Breaches

4

Target Audience

Client Targets

Startups, Midsized • $1M+ Revenues •  $10M+ Valuation • 10+ Employees

High Data Proliferation

• E-commerce • M-commerce

4 Data Parameters • Proprietary • Competitive Analytics • Consumer Financial • Business Reputation

Based in USA

Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

Lookalike Companies

5

Mission Statement

Dignitas ( dig-ni-tas) – the sum of the personal clout and influence over one’s lifetime; an ancient Roman concept

Dignitas Security and Assurance is an advisory platform providing computational, customized solutions for cybersecurity liability insurance among startups and midsized companies in the technology space.

Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

We facilitate faster, more affordable insurance management for clients through •  a proprietary pricing algorithm and underwriting process •  a team of the industry’s best cybersecurity analysts •  strategic partnerships with third-party IT security vendors

6 Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

Business Process

•  File backup •  Intrusion Tools •  Penetration Testing •  Third-Party Preventative Recommendations

Premium Services Strategic Partners

7

Credit Score Internet Traffic Industry

Store Type Prior Cyber

Security Coverage

Company Revenue

Intrusion Detector Tool Type of Data

Point-of-Sale Level of Cyber

Security

Low credit score

More traffic

More data

needs

Greater online

presence

% discount

to be applied

High priority

data

% discount

will be applied

Higher revenue

% discount

will be applied

Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

70% algorithm + 30% audit by

cyber security experts

Pricing: Algorithm + Audit

Revenues: 5-Year Outlook

FY 2016 FY 2017

FY 2018

FY 2019

FY 2020

Market Size  $77,000,000.00      $84,700,000.00      $93,170,000.00      $102,487,000.00      $112,735,700.00    

Market Growth 10.00%   10.00%   10.00%   10.00%  

Clients 6   12   24   48   96  

Market Penetration 0.50%   0.75%   1%   1%   1%  

Sales Revenue  $385,000.00      $635,250.00      $931,700.00      $1,127,357.00      $1,352,828.40    Strategic Partners

Referrals (15%) 7425   14850   29700   59400   118800  

LAE Ratio 85%   85%   85%   85%   85%  

Profit Margin 15%   15%   15%   15%   15%  

Profit $65,175.00 $110,137.50 $169,455.00 $228,503.55 $321,724.26

Industry Product Mission

Business Model

Pricing Strategy Case Study Revenue

Forecast Scalability

•  • 

• Subscription-based • Customizable

pricing algorithm • Economies of scale

•  Target

Segment Scalability

Education Partnerships

Expertise Investment

9 Industry Product

Mission Business Model Case Study Revenue

Forecast Pricing Strategy Scalability

Growth Strategy

The Cybersecurity Knowledge Gap

Appendix

11 Industry Product

Mission Business Model

Case Study

Revenue Forecast

Pricing Strategy Scalability

How Dignitas could have helped Uber:

Case Study: Uber Technologies

Business Impact •  Data breach leaking the personal information of about 50,000 drivers. •  Lawsuit seeking more than $5 million in damages for drivers

SituationBuess Impact

•  Loss of employee and user trust •  Increased risk of losing propriety data and consumer data to competitors(Lyft)

ImpactBuess Impact

InsightBuess Impact

•  Consumers upset by delayed public response to the breach

Online surveys sent to consumers (n=24) and business owners (n=12) In-person interviews with 6 managers in the Chelsea neighborhood

Exhibit 1a: Interview Data

13

Exhibit 1b: Consumer Survey Design

Exhibit 1c: Business Survey Design

Exhibit 1d: Business Survey Design

Exhibit 2: FY 2016 Budget Forecast