Willis Re attempts to add ‘silent cyber’ to risk model
Willis Re has upgraded its cyber risk portfolio modelling tool PRISM-Re to now include what it has termed silent cyber – cyber losses arising from insurance policies not specifically designed to cover cyber risk.
PRISM-Re was first launched by Willis Re in February 2015 and is used to manage cyber portfolios and estimate downside risk arising from privacy breach and network outage following a cyber attack.
The 2018 update to PRISM-Re will help insurers manage their exposure to cyber risk across their entire portfolio of property and casualty business. The model incorporates the likelihood of a loss resulting from silent cyber and overlays this against client-specific non-cyber limits profiles and loss severity curves to generate a full loss distribution for silent cyber loss potential in isolation, or in conjunction with affirmative cyber loss.
The likelihood of loss is derived from the responses of around 750 insurance professionals to Willis Re’s 2017 silent cyber survey which focused on the extent to which the cyber aspect of exposure would increase the likelihood of a covered loss to various industry segments in the property, other liability, auto and workers compensation lines of business.
Mark Synnott, global cyber practice leader, Willis Re said: “Silent cyber is a leading concern for the insurance industry at every level, including management, boards of directors, regulators and rating agencies. Recent events have exacerbated the threat that cyber poses to insurers across their non-life portfolio and we are extremely proud to introduce a tool that provides a comprehensive assessment of an insurer’s exposure to cyber loss.”
Jess Fung, head of cyber modelling, Willis Re, added: “The addition of silent cyber to PRISM-Re represents another significant innovation by our highly skilled analytics team. Our model can now generate a full probabilistic frequency and severity loss distribution for silent cyber loss potential in isolation, or in conjunction with affirmative cyber and allows insurers to monitor changes in cyber exposure composition at different probability levels. We believe it will further improve the ability of our clients to model and manage the large and growing cyber threats that we face.”
Join us at Intelligent Automation in Insurance - London 2018. Book by Jan 31st and you could save £400.
More of today's news
US tax cuts hit insurers in Q4 but offer long-term gains
AXIS receives Lloyd's approval to manage Novae and SPS syndicates
RGA's innovation unit acquires LOGiQ3 Group
Fidelis promotes to appoint CUO of Fidelis Underwriting
XL Catlin boosts EMEA M&A unit with two hires
IT specialist Mphasis launches blockchain offering for insurers
Ethos hires head of property from Liberty International
Coverys Managing Agency poaches Argo Global CRO
CNA hires Chubb exec to lead financial institutions practice
