Call us now:
It is a hard place to be, there is an opportunity to grow a market in cyber insurance. The ‘gold rush’ has pulled many underwriters into the market pricing products with little understanding of the complexity of the risk. There is also a need for capital, regulatory or otherwise to be able to reliably address claims.
The article makes a good point that Capital markets are willing to look at Cyber ILS products. So long as the risk is well understood, well-modeled and adequately priced and that’s the challenge for the cyber insurance industry. If governments, companies and individuals struggle with understanding, accepting and managing the risks at present. There will need to be a lot of thought put into the modelling by the insurance industry.
In my old days we worked on a simple paradigm Cause, Event, Impact. When you can correlate the three in a meaningful way, when the inputs deliver the outputs repeatably, then you know your model is reasonable. I wonder if the best analogy is modelling weather patterns. They are not 100% perfect but getting close and give you enough information to make a reasonable decision.
I’m sure we will get there, it may take some time.
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6579991175539802112