American International Group has invested in a global investigative consultancy in a bid to deepen its ability to help clients combat cyber risks.
Financial details aren’t being disclosed. But AIG is buying a minority stake in K2 Intelligence, a firm that focuses in part on cyber investigations and defense, as well as areas including anti-money laundering, regulatory compliance, data analytics and visualization, and other related services.
AIG said it will partner with K2 to develop products it will use to help clients reduce and manage their cyber risks. Areas that AIG hopes to target for clients through this arrangement include cyber security, construction projects, M&A deals, global real estate transactions, liability exposures and more.
The deal comes as the property/casualty insurance industry continues its struggle to keep up with the fast-evolving problem of cyber risks. In March, Catherine Mulligan, senior vice president of Zurich North America’s management solutions group, told a U.S. Senate subcommittee that the industry needs a national cyber threat database to help keep up with the problem.
The “scope of the exposures is too broad to be solved by the private sector alone,” Mulligan said at the time.
John Doyle, CEO of AIG’s commercial insurance arm, said that teaming with K2 is his company’s way of catching up to and managing cyber risk problems.
“Partnering and aligning with cyber security experts like K2 Intelligence is a signal to the marketplace that AIG is committed to delivering the comprehensive measures and expertise needed to help mitigate and manage this growing and rapidly evolving threat,” Doyle said in prepared remarks.
K2, launched in 2009 by Jeremy Kroll, is based in New York, employs 300 people, and also has operations in London, Madrid and Tel Aviv.
AIG touted K2’s experience in its deal announcement, noting that it advises governments, companies, boards and individuals. AIG and K2 will also “explore opportunities in other key industry segments,” AIG said.