2018 Will Feature Continued Vulnerability Exploits and Expansion in Cyber Insurance Options

2017 may have been the year in which organizations began to fully understand that “cyber risk” means more than retail data breaches and 2018 for the cyber insurance industry will call for continued efforts to meet the expanding needs of their clients.

A key theme of 2017 included the exploitation by cybercriminals of known vulnerabilities to cause chaos, business disruption, and financial losses. Experts agree that the tactic is unlikely to end any time soon.

Read more at https://www.advisenltd.com/2018/01/04/2018-will-feature-continued-vulnerability-exploits-expansion-cyber-insurance-options/

Erin Ayers, 2018 will feature continued vulnerability exploits and expansion in cyber insurance options (January 4, 2018), available with subscription at Advisen Cyber Front Page News.

Insurers ‘On the Right Path’ to Managing Cyber Risk Aggregation

NEW YORK — The time to manage cyber risk aggregation is now and it may be an uphill battle against lack of historical data and certainty of the risk, but the industry appears to be on the right track, according to a panel of experts speaking during Advisen’s Cyber Risk Insights Conference here on Oct. 26.

Currently, determining whether insurers are well capitalized to handle the cyber risk aggregation is “basically impossible” due to lack of data, according to Fred Eslami, senior financial analyst and cybersecurity leader for A.M. Best. Traditionally, the roads to impairment for insurers have been underreserving, expanding too quickly, and natural catastrophe losses. Ratings firms have metrics to input into their capital models for those risks – not for cyber, but Eslami added that they are making strides.

“We don’t believe that it’s getting to a point where the so-called cyber PML would exceed earthquake or hurricane levels,” he said.

Read more at https://www.advisenltd.com/2017/11/09/insurers-right-path-managing-cyber-risk-aggregation/

Erin Ayers, Insurers ‘on the right path’ to managing cyber risk aggregation (November 2, 2017), available with subscription at Advisen Cyber Front Page News.

Guy Carpenter, Symantec Team Up to Model Cyber Risk Aggregation

With aggregation of risk at the top of most cyber insurers’ minds, a new alliance between Guy Carpenter & Company, LLC, and the cybersecurity specialists at Symantec Corporation will aim to provide a risk model that measures frequency and severity of cyber events and the possible financial impact on not only cyber policies, but also traditional coverage with no cyber exclusions.

Guy Carpenter announced this week that it has launched a Cyber Solutions Specialty Practice, focused on cyber reinsurance. Symantec will provide analytics and cybersecurity expertise.

Both firms commented that cyber attacks carry the potential to cost organizations “as much as $400 billion a year” in the aggregate. Insurance industry observers have stated that teaming up with cybersecurity experts will allow the industry to get a better handle on the type of risks faced by businesses.

Read more at http://www.advisenltd.com/2016/05/23/guy-carpenter-symantec-team-up-to-model-cyber-risk-aggregation/

Erin Ayers, Guy Carpenter, Symantec team up to model cyber risk aggregation (May 23, 2016), available with subscription at Advisen Cyber Front Page News.