IAG has taken a 2% equity share in US-based cyber-security business Upguard.

Upguard, which brought in $US17 million ($22.12 million) with its latest fundraising round, aims to provide cyber-risk benchmarking for companies, insurance providers and consumers.

It will use the funds to drive adoption of its cyber-security assessment (CSTAR) score and explore insurance opportunities.

“Just as credit scores aggregate financial risk factors into one easy-to-understand number, CSTAR provides a single measure of risk for information security,” Upguard says.

Ron Arnold, GM of IAG’s Venturing Team, says the insurer was drawn to Upguard “primarily because it has developed a unique response to the growing need for organisations to mitigate cyber risk”.

CSTAR “provides information that helps companies properly understand and manage their IT assets”, he says.

“It also has the potential to help insurance companies such as IAG better assess – and therefore price – customers’ cyber risk.

“We look forward to working with [Upguard] to help refine the company’s methodology, and to test the product’s ability to predict cyber risk.”