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.

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

Cyber Insurers and Brokers Seek Harmony on Crafting Coverage

With cyber risk as the hottest topic during the Risk and Insurance Management Society’s (RIMS) annual conference here, a common theme emerged: Now is the time for collaboration and innovation among brokers and insurers, but the best way to achieve that is yet to be determined.

However, the steps taken to achieve broad cyber coverage at the right price with the right players represent an area of collegial disagreement among many industry participants. How many carriers should be on a tower and at what limits? What’s the current capacity ceiling? How broad is too broad in coverage terms?

Building upon the 2016 RIMS event—when the main topic of conversation addressed the strides cyber insurers needed to make to meet organizational needs of buyers—this year’s talks reflect the fact business interruption (both contingent and direct), cyber-related property damage, bodily injury, and reputational harm are all risks for which the growing cyber insurance marketplace has developed solutions.

Erin Ayers, Cyber insurers and brokers seek harmony on crafting coverage (April 27, 2017), available with subscription at Advisen Cyber Front Page News.

The Globalization of the Cyber Market

Webinar Date: May 25, 2017 at 11:00 A.M. ET

With interest in cyber insurance on the rise, some attention may turn to the implications this risk trend may have worldwide, begging a variety of questions to explain similarities, differences, and obstacles across markets. What is the value of cyber insurance worldwide? Who is buying it? Why are they buying it? How do motivations to buy vary across geographic market? How do policies differ based on location?

On May 25, join Cyberscout’s Tom Spier, Advisen’s Chad Hemenway, and other experts as they discuss how the world is responding to the rise in need for cyber insurance. Sponsored by Cyberscout, the one-hour webinar will offer insights into the questions listed above. Panelists will also take time to answer some questions from the audience.

For more info and registration about this upcoming event, visit http://www.advisenltd.com/2017/05/25/globalization-cyber-market/

Advisen Ltd. | Cyberscout. (2017). The Globalization of the Cyber Market [Webinar].

Cyber Market Could Offer Policy Limits Up to $1B in Five Years, Say Top Execs

NEW YORK — The cyber insurance industry has a long way to go toward offering the capacity and coverage the market needs, but the journey has begun, according to experts speaking during Advisen’s Cyber Risk Insights Conference in October.

Dominic Casserley, current president and deputy CEO of Willis Towers Watson, told a packed room that he expects the industry to find its way on cyber, including building the capacity for a $1 billion policy within five years. This would double reportedly-available per-policy limits.

“The top of the mountain is still shrouded in clouds,” said Casserley, who said he doesn’t expect the major players in the market to change. “We’re in the foothills, there’s a lot of work to do, but we know the path we’re going to go down.”

Erin Ayers, Cyber market could offer policy limits up to $1B in five years, say top execs (December 1, 2016), available with subscription at Advisen Cyber Front Page News.

Allied World’s Glasgow Advises Close Eye on Cyber Regulatory Environment

Advisen executive interview: Jason Glasgow, Allied World

September 2016

Advisen Editor Erin Ayers interviewed Jason Glasgow, head of Allied World’s privacy and network security group, about the rapidly evolving cyber insurance market and what the insurance industry is doing to meet the challenges of ever-changing cyber risks and cybersecurity regulatory developments.

Their Q&A is featured in the free, 2-page interview written by Advisen.

Read and download the full interview with Allied World’s Jason Glasgow at http://www.advisenltd.com/2016/09/30/allied-worlds-glasgow-advises-close-eye-on-cyber-regulatory-environment/

Jason Glasgow, Allied World. (2016, September). Advisen Executive Interview.

Advisen Ltd.

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