Guy Carpenter & Company today announced the formation of a strategic alliance with Symantec Corporation, a global leader in cyber security, to create a cyber aggregation model. The model will include a comprehensive catalogue of cyber scenarios from which insurers can derive frequency and severity distributions to measure the potential financial impact of loss from both affirmative cyber coverages and “silent” all-risk policies where cyber is the peril, but no cyber exclusions exist.
Guy Carpenter’s Cyber Solutions Specialty Practice, which focuses on the development and delivery of innovative cyber reinsurance solutions, will spearhead this effort. Symantec is a complementary new partner for Guy Carpenter.
Cyber attacks are estimated to cost businesses as much as $400 billion a year, and the systemic nature of the risk means (re)insurers can suffer losses from multiple insureds across vast geographies from a single event, exposing infrastructure, supply chain, and other interconnected risks. In the wake of the cyber attack on the Ukrainian power grid in late 2015, (re)insurers are attempting to model, and assess the aggregation risk of, potential attacks on critical infrastructure, including electric grids, telecommunications networks, dams, transportation systems, chemical plants and civilian nuclear facilities. However, limited historical data and the constantly evolving threat make it a challenging peril to model.
The collaboration between Guy Carpenter and Symantec will leverage the advanced analytics, unparalleled cyber security knowledge, and combined scale and innovation of both companies to accelerate the services needed to create the industry’s most advanced cyber aggregation model.
“By combining Guy Carpenter’s risk management and catastrophe modeling expertise with Symantec’s technical knowledge and proprietary data, we are pioneering a cyber aggregation model to help reinsurers gain a better understanding of their correlated cyber risks and to manage and protect their capital in extreme cyber scenarios,” said Tim Gardner, CEO of U.S. Operations at Guy Carpenter.
“Symantec’s cyber security data and analytics, combined with Guy Carpenter’s deep knowledge of the emerging cyber reinsurance market, will give our insurance customers a better understanding of the most damaging cyber attacks,” said Roxane Divol, senior vice president and general manager of website security at Symantec and executive sponsor of Symantec’s new Cyber Insurance Group.
The Guy Carpenter Cyber Solutions Specialty Practice continues to explore new and innovative data, analytics and broking solutions to the growing cyber risk. Clients can contact their Guy Carpenter broker for further information on the cyber aggregation model and the Cyber Solutions Specialty Practice, or click here.