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LONDON, U.K. - January 03, 2017  RMS, the world’s leading catastrophe risk management firm, today announced that QBE Insurance Group (QBE) has agreed a multi-year deal to license the RMS Cyber Accumulation Management System. The move will enable QBE's growing cyber business to model a range of potential cyber catastrophes to determine the potential impact of a wide-scale systemic attack.

Cyber risk has the potential to impact not just specific cyber policies, but also multiple other policies, for example marine or property. The breadth of loss process models included in the RMS Cyber Accumulation Management System will enable QBE to identify and manage its potential cyber risk accumulations in its portfolios, and so support the growth of QBE’s resilient and diversified cyber business.

Christer Pehrson, managing director of client development at RMS, said: "Accumulations of cyber risk are hugely complex and not geographically limited, unlike perils such as hurricanes or earthquakes. The web of potential impacts and losses is enormous and insurers are increasingly concerned about the growing accumulation of risks within their cyber insurance business. The RMS Cyber Accumulation Management System will enable QBE to understand and control this accumulation to maximize the opportunity provided by cyber as a new line of business."

As yet, there have been no cyber catastrophes. So the limited historical precedent for this peril makes it particularly challenging for insurers to set their capacity levels. Without the valuable insights into the extreme, but plausible, cyber events provided by the Cyber Accumulation Management System many insurers have to assume a conservative view of risk as they are unable to set the Probable Maximum Loss for cyber catastrophes. This can limit growth of this potentially profitable line of business, as well as the efficient management of a firm’s capital.

Eric Letourneau, senior vice president and group head of catastrophe modeling at QBEsaid: “Cyber has the potential to trigger a correlated loss across many accounts. Therefore, a deep understanding of its systemic risk and the consequent impact on our interconnected world is critical to managing the risk. QBE’s objective is to manage cyber exposures within a well-defined risk appetite, similar to established practices for property accumulations. The RMS Cyber Accumulation Management System helps us address the significant challenge of aggregate cyber risk and we are excited about its future roadmap.”

The RMS Cyber Accumulation Management System incorporates its open source data schema which provides a common approach for capturing exposure. This data schema is increasingly being adopted as the market standard for cyber exposure with more than 20 cyber insurers now using it. The RMS Cyber Accumulation Management System also streamlines regulatory reporting, reducing insurers’ overheads.

Notes to Editors

The RMS Cyber Accumulation Management System was developed in collaboration with eight forward-thinking cyber insurers and the University of Cambridge's Centre for Risk Studies. It is continuously updated with the latest developments in cyber threat landscape, the regulatory environment and mitigation steps taken by companies and governments.

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About RMS

Risk Management Solutions, Inc. (RMS) helps insurers, financial markets, corporations, and public agencies evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics.

RMS leads the catastrophe risk industry that we helped to pioneer by marrying data and advanced model science with leading-edge technology. Leaders across multiple industries can address the risks of tomorrow through RMS Risk Intelligence™, our open, real-time exposure and risk management platform, enabling them to tap into RMS HD models, rich data layers, intuitive applications and APIs that simply integrate into existing enterprise systems.

RMS is a trusted solutions partner enabling effective risk management for better business decision making across underwriting, risk selection, mitigation, and portfolio management.

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Media Contacts

Matthew Longbottom

PR Lead, EU and APAC
+44 20 7444 7706 prteam@rms.com

Devonne Cusi

PR Lead, Americas
+1 551 226 1604 prteam@rms.com
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