To address the challenges surrounding silent cyber, (re)insurers require an effective means of qualifying and quantifying the risk of silent cyber across entire portfolios, according to Guy Carpenter colleagues Will Garland, President, Centers of Excellence, and Erica Davis, North America Cyber Center of Excellence Leader, Guy Carpenter.
While many insurers have undergone analysis on their own policy wording, there remain lingering concerns regarding:
- Execution of strategy to attach appropriate exclusionary or clarification wording
- Proper and thorough excess placement analysis of underlying wording
- Manuscript policies, which deviate from standard wording and often offer more generous terms.
To assist in this often highly laborious undertaking, Guy Carpenter has established a strategic relationship with RiskGenius, an insurtech firm that utilizes artificial intelligence to evaluate potential silent cyber exposure at an individual policy level. This offering provides clients with a means of assessing corporate silent cyber exposure at scale, while generating deeper risk insights.
GC Cyber Analytics has also developed an in-house solution that combines the qualitative RiskGenius tool outputs with a proprietary modeling tool for silent cyber – GC SCoPE (SM). GC SCoPE utilizes a robust catalog of unique scenarios to model silent cyber across various lines of business. Through this analytic capability, we are able to help clients measure the gross loss impact of cyber events by industry segment, scenario and even by insured.
This level of granularity and transparency of output is critical to our clients to help them proactively address both affirmative and non-affirmative cyber risks, including silent cyber in property, casualty and several other lines of business.
Leading to 2021
For the insurance industry, cyber and technology risks pose a number of opportunities, challenges and threats. Cyber risk is constantly evolving and at an increasingly rapid rate, causing insurers and businesses difficulties in measuring, assessing and responding to cyber events.
Especially with this emerging and dynamic risk, leveraging a comprehensive suite of modeling and analytic resources is increasingly critical as clients build more informed portfolio strategies. 2020 has been a year of unprecedented events, and the complexities innate within cyber risk prove no exception.