Cyber
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Developing brand new and innovative solutions for the insurance industry is a rare and exciting opportunity. At RMS, we are modelling the physics and dynamics of cyber risk, so this line of business can grow prudently and profitably.” - Dr. Christos Mitas, Head of RMS' Cyber Risk Modelling Group |
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Maximizing Cyber Insurance
Opportunities by Minimizing Uncertainty
Cyber insurance has been a strong performer in a challenging market cycle, providing consistent top-line growth at a time when little is available. However, there is systemic risk lurking beneath that growth and RMS® is partnering with many leading companies to quantify cyber risk and unlock this huge market opportunity.
RMS Cyber Solutions uses a multi-dimensional assessment to identify and quantify key risk variables that determine the frequency and severity of cyber-attacks. Through assessing threat-actor groups, human and outside-in vulnerabilities, digital assets at risk and historical losses, our model can help unlock your full cyber potential and ensure long-term profitability.
RMS' v3 Cyber Model was released in July 2018, providing state of the art technology that allows clients to capture standardized cyber exposure data and perform risk modeling against a range of cyber loss processes. The third-generation release represents a substantial investment by RMS into cyber risk quantification that incorporates Information Technology and Cyber Physical risk to address silent and affirmative coverages.
A Common Data Standard
A key foundational component of the cyber model is the RMS Cyber Exposure Data Schema. In partnership with the University of Cambridge Centre for Risk Studies, this opensource data structure helps (re)insurers capture exposure data at a reasonable level of detail representing the cyber risk of an insured company. The schema provides a common syntax for organizing and measuring affirmative and silent cyber exposures, facilitating risk transfer across the industry.
Cyber Loss Process Models
RMS has created a series of risk models to stress test a (re)insurer’s portfolio and determine the probability of extreme losses. They reflect the key IT-related cyber threats facing (re)insurers, along with a suite of cyber-physical stress tests. These risk models allow insurers to explore plausible examples of systemic cyber catastrophes that impact insurers:
Information Technology
- Data Exfiltration
- Denial of Service
- Cloud Provider Failure
- Financial Transaction Theft
- Contagious Malware
Cyber Physical
- Power Blackout
- Property Fire
- Marine Cargo Port
- Industrial Facilities
- Upstream Energy
Open Analytics Platform
RMS Cyber Solutions provides a framework for analyzing exposure and loss results across affirmative and silent cyber insurance policies. The platform leverages the market leading RMS financial model to accurately represent policy terms and conditions, both at the primary and reinsurance levels. The new user interface provides a streamlined approach to data management and seamless access to analytic insights.
RMS enables (re)insurers to:
- +Define growth strategies and business planning, including product design
- +Support risk selection and underwriting decision making
- +Set an appropriate technical price
- +Assess premium adequacy, including cat loading
- +Allocate risk capital
- +Optimize reinsurance purchasing
