Silent Cyber – The New Catastrophe Risk: CIAB Round-Up

A fierce spotlight has been thrown on cyber exposures by senior insurance industry leaders concerned about the catastrophe nature of the risk and the hidden aggregation issues posed by so-called silent cyber cover in policies.

Cyber exposures are rapidly being framed as the “new catastrophe risk” by insurance executives, as losses such as the June 27 global ransomware attack, which affected numerous businesses including Merck Pharmaceuticals, and Equifax data breach are rumored to potentially cost the insurance market around $1 billion each.

Advisen spoke to senior insurance executives at the CIAB Insurance Leadership Forum in Colorado Springs this week and most expressed deep concern with the aggregation of losses across multiple insureds and lines of coverage from a single event.

Read more at https://www.advisenltd.com/2017/10/12/silent-cyber-new-catastrophe-risk-ciab-round/

Rebecca Bole, Silent cyber – the new catastrophe risk: CIAB round-up (October 12, 2017), available with subscription at Advisen Cyber Front Page News.

Economic Losses from Louisiana Floods Over $10B; Insured Losses Much Lower

Catastrophes in the month of August took a serious economic toll, with total damages from the “historic” Louisiana floods expected to top $10 billion and an earthquake in Italy leaving 266 people dead, according to Aon Benfield’s latest global catastrophe report.

“A slow-moving area of low pressure brought multiple days of extreme rainfall across parts of the Gulf Coast and Midwest in the United States, causing catastrophic flood damage in several communities,” stated Aon Benfield in its report.

Read more at http://www.advisenltd.com/2016/09/14/economic-losses-from-louisiana-floods-over-10b-insured-losses-much-lower/

Erin Ayers, Economic losses from Louisiana floods over $10B; insured losses much lower (September 14, 2016), available with subscription at Advisen Professional Front Page News.

Property Insurers Retained More CAT Risk, Best Report Finds

Property insurers in the London, European, and Bermuda markets took on more catastrophe risk between 2012 and 2015 for 1-in-100-year events amid favorable pricing conditions, but drew more of a line at the riskier 1-in-250-year events, according to a recent analysis from ratings firm A.M. Best.

Best evaluated the probable maximum losses (PMLs) for 25 of the largest rated insurers in the field and found that although catastrophe exposure grew, it did not exceed expected levels, given the increased use of alternative capital vehicles.

Read more at http://www.advisenltd.com/2016/04/28/property-insurers-retained-more-cat-risk-best-report-finds/

Erin Ayers, Property insurers retained more CAT risk, Best report finds (April 28, 2016), available with subscription at Advisen Professional Front Page News.