San Francisco, California 21 January 2021 –
CyberCube has updated its data-driven analytic software to seamlessly enable insurers to quantify losses to scenarios that Lloyd’s has issued to syndicates for the upcoming March data collection deadline.
These scenarios are used to report to Lloyd’s on how their portfolio of business would be affected by major cyber events.
CyberCube has introduced the three scenarios for realistic cyber disasters as part of its Portfolio Manager product, which is used by risk carriers.
The three scenarios, which CyberCube designed in conjunction with Lloyd’s Underwriting team, Lloyd’s market practitioners and Guy Carpenter, are:
– a cloud outage
– a power or infrastructure outage
– a major malware attack
The Lloyd’s Market Association’s Cyber Risk Strategy Group has also been heavily involved in developing the scenarios over the past 15 months.
By analysing how their portfolios of insurance risks are affected by these scenarios, the Lloyd’s market can assess each syndicate’s financial resilience and that of the market as a whole. The scenarios also expose the most up-to-date threat landscape and associated cyber threats that cause significant accumulations of losses.
The three cyber scenarios, which will in future be included in Lloyd’s formal Realistic Disaster Scenario (RDS) framework, will play an important role in syndicates’ business planning processes. They mark the market’s most sophisticated cyber analysis exercise to date.
Pascal Millaire, CyberCube’s CEO, said: “Lloyd’s syndicates have long been leaders in the global cyber insurance market and so it is no surprise that the Lloyd’s market is also taking a leadership role amongst regulators in thoughtfully measuring cyber exposure accumulation. We’re thrilled to be able to help Lloyd’s syndicates with this exercise using our platform.”
Kirsten Mitchell-Wallace, Lloyd’s Head of Portfolio Risk Management, said: “The Lloyd’s market is a global leader in cyber insurance so understanding and controlling exposure to this class of business is critical. Cyber is a rapidly evolving risk that demands scrutiny at both syndicate and market level: the use of scenarios helps Lloyd’s to achieve this.”
Siobhan O’Brien, Managing Director and Head of Guy Carpenter’s International Cyber Centre of Excellence, commented: “This is a very important piece of work for the broader RDS framework. The findings of the study will prove valuable not only for Lloyd’s syndicates but also for the wider insurance industry in helping to address some of the most challenging aspects of cyber risk that impact multiple lines of insurance.”
The three new scenarios are available with immediate effect.
CyberCube’s Portfolio Manager is a cyber risk catastrophe model that allows insurers to understand how their book of business would be affected by a series of cyber threats. The model has not been signed off by Lloyd’s but is widely used in the market.
Deviations need to be reported to Lloyd’s and any questions regarding the collection period (January 8 to March 31) should be addressed in the first instance to Lloyd’s.
ENDS
About CyberCube
CyberCube delivers the world’s leading cyber risk analytics for the insurance industry. With best-in-class data access and advanced multi-disciplinary analytics, the company’s cloud-based platform helps insurance organizations make better decisions when placing insurance, underwriting cyber risk and managing cyber risk aggregation. CyberCube’s enterprise intelligence layer provides insights on millions of companies globally and includes modelling on thousands of points of technology failure.
The CyberCube platform was established in 2015 within Symantec and now operates as a standalone company exclusively focused on the insurance industry, with access to an unparalleled ecosystem of data partners and backing from ForgePoint Capital, HSCM Bermuda, MTech Capital and individuals from Stone Point Capital. For more information, please visit www.cybcube.com or email info@cybcube.com.