Due in part to the lack of loss experience in the cyber market and in-depth understanding of cyber threat and behaviour, many cyber catastrophe models are still in their infancy. However, the choice of some market leading companies to incorporate the outputs into their capital modelling means that the market is entering a period of increased scrutiny of cyber models under the regulatory regimes that govern solvency calculations.
This is the focus of the third edition of Cyber IQ from the cyber reinsurance team at ICMIF Supporting Member Gallagher Re: “Evaluating Cyber Models”. The report highlights the nuances of validating the models in comparison to other catastrophe models; discusses the potential issues companies may have with their validation process; as well as reflecting on lessons learnt from validating other models under current regulations and the remaining steps cyber models may experience before they are considered established and mature.
ICMIF members are able to download the latest edition of Cyber IQ here.
Previous editions of Gallagher Re’s Cyber IQ are also available via the links below:
In March this year, Gallagher Re announced a collaboration to integrate BitSight cybersecurity data with Gallagher Re’s reinsurance insights and analytics.
The partnership provides reinsurance clients with a holistic view of security performance and supply chain aggregation within their portfolios, giving them a comprehensive and differentiated understanding of cyber risk compared with existing modelling approaches on the market.
