cyber reinsurance

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.

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

A new report calls upon the United Kingdom government and cyber insurance marketplace to band together to form a catastrophe reinsurance fund to better combat cyber risk, especially on property damage, third-party liability, and business interruption.

Taking the economy’s reliance on information and communications technology as a given, a new report notes that our cyber world, while vital, is also vulnerable. That vulnerability has been met with improved cybersecurity practices available from a wide range of security firms, as well as a rapidly growing cyber insurance marketplace. However, for the insurance industry to fully address cyber risk, the report, developed by Long Finance and Z/Yen Group and sponsored by APM Group, asserted that a public-private partnership in the form of a catastrophe reinsurance pool would help.

Advisen Ltd.

Transforming Insurance

Guy Carpenter, Symantec Team Up to Model Cyber Risk Aggregation

Cyber Reinsurance Pool Recommended to Boost UK’s Coverage Options