Verisk launches first global cyber exposure standard

Verisk Analytics, the data analytics provider, has released the industry’s first global cyber exposure data standard which it claims will help create a uniform method for data transfer across the insurance value chain.

Verisk’s catastrophe modelling business AIR Worldwide has also developed a preparer’s guide to assist companies in collecting and storing the necessary cyber exposure data in an open format suitable for modelling.

The Verisk cyber exposure data standard is the first step in the process of managing accumulations of cyber risk and will help create a uniform method for data transfer throughout the industry,” said Verisk.

“Many of the fields are optional to provide flexibility for companies that collect different types of information or at different levels of detail.

“The AIR preparer’s guide will assist companies in collecting and storing the data. Many client organisations, including companies in the insurance, broker, and reinsurance industry, have reviewed the standard and provided valuable input.”

Verisk said that cyber risk has become the fastest-growing peril over the past year and that the ability to analyse cyber risk accurately requires a full understanding of the cyber exposure data.

The firm said it is imperative that companies capture this data in a common format that can be used by organisations across the insurance value chain. It is also crucial that the exposure data standard used today and in the future be robust enough for organizations to grow into.

“Verisk and AIR have developed a comprehensive data standard containing the critical parameters that must be captured to assess a company’s risk from cyber attacks,” said Nigel Pearson, global head of fidelity, Allianz Global Corporate & Specialty.

“Collecting and storing this data forms a basis for analysing accumulated risk, and Allianz can immediately begin leveraging AIR’s preparer’s guide to determine which additional parameters we should start capturing. We look forward to applying the standard for modelling when the AIR cyber risk model is complete.”

Tom Bolt, director, performance management, Lloyd’s of London, added: “Cyber insurance is an important new area of coverage, and it is essential that we have good-quality standardised data to track exposures.

“I am delighted that AIR has collaborated with us to help standardise some common data requirements and that their new data schema incorporates this."