Lloyd’s of London has developed common core data requirements for cyber risks, a task achieved through collaborating with modeling firms AIR Worldwide and RMS, along with RMS’ partner, the Cambridge Centre for Risk Studies.
Both AIR and the RMS/Cambridge team have agreed to highlight common elements when they publish their data schemas later this month and most importantly each has agreed to use similar terminology and precise definitions, Lloyd’s said in a statement.
“Cyber insurance is an important new area of coverage and it is essential that we have good quality standardized data to track exposures,” Tom Bolt, Lloyd’s director of Performance Management, said in prepared remarks. “I am delighted that the RMS/Cambridge team and AIR, in consultation with the Lloyd’s Market Association, have worked with us to propose standard definitions for some common data. I have written to major brokers to ask them to endeavor to provide this data to Lloyd’s underwriters.”
Bolt added “the cyber insurance industry is showing real innovation and demonstrates the ability of insurers to develop policies to cover modern, complex risks. Due to the growing importance of this risk class, quality standardized exposure data is critical for increased levels of insurance coverage and better risk modeling.”
“Models for natural catastrophe risks are well developed in the re/insurance industry and the data requirements are relatively standardized,” Bolt said, noting, however, that models for cyber risks are still developing and need the industry to work collectively so that risk can accurately be calculated.
Details of the common core schema for cyber risk are available via the Lloyd’s website.