Managing Cyber Accumulation Risk

Tuesday, February 2, 2016 at 3:00 p.m.
Old Library, Lloyd's of London
1 Lime Street
London EC3M 7HA
Learn more about the New York Cyber Risk Seminar on February 10, 2016

Cyber threat is growing. Sixty-one percent of business leaders see cyber as a serious threat to their business, with the cost of cybercrime for the global economy now estimated at US $445 billion annually.* The global cyber insurance market is now set to reach US $7.5 billion by 2020, according to a PwC report, tripling its current size.**

To capitalize on the cyber market, insurers must understand the systemic nature of cyber threat and be able to manage accumulations that could cause widespread and correlated losses. Portfolio management of cyber lines is concerned with risk aggregation, amongst other factors.

Insurers recognize the need to formulate, model and standardize the language and understanding of cyber risk. This all requires a common framework to both capture and evaluate cyber exposure, made possible using detailed technical insights to assess probable maximum losses from the main drivers of insured cyber loss. **

Cyber Insurance — A New Way Forward

This seminar outlines our work with the respected Cambridge Centre for Risk Studies (CCRS) and eight leading cyber insurers to develop the RMS Cyber Accumulation Management System (CAMS). CAMS includes accumulation scenarios for the primary drivers of cyber insurance loss and portfolio management for cyber insurance.

Together with contributions from experts and thought-leaders in cyber risk, our seminar will cover:

• Understanding key drivers of cyber risk and establishing risk appetite
• Defining a standardized cyber exposure data capture framework
• Introducing five accumulation management scenarios through technical analysis of cyber loss processes, including Data Exfiltration; Denial of Service Attacks; Financial Transaction Compromises; Cloud Service Provider Failure; and Extortion Incidence
• Using CAMS to capture client cyber risk data and to actively monitor and manage risk accumulations