Avoiding the Cyber Quake
Russell Group MD Suki Basi is quoted extensively in an article on cyber aggregation risks in Insurance Day [21st August] which outlines that “none of the major commercial risk model vendors has a model for cyber risks at present but the pressure to produce one over the next two to three years is immense.”
As readers of Russell Group white papers will have noted in the last 18 months this is a key topic that we have highlighted over and over again. As the article acknowledges: “There is general agreement that monitoring the aggregation of cyber risks represents the biggest challenge for the market,” which is a theme that Russell Group has been exploring with increasing regularity in conversations with (re)insurers.
In the article, Basi says that enterprise risk solutions can help address the absence of a workable standardised cyber risk model. According to Basi: “We would be looking to identify and accumulate at the appropriate levels needed to effectively model cyber as we currently do supply chain, political risk or trade credit exposure.”
To read more on the latest thinking on risk accumulation across cyber exposures, you can access the full article here.