AIR Worldwide said it has come up with a new cyber risk model that can account for specific incidents for global insurance portfolios. The London Market Group (LMG) will work with Sequel to develop a faster and more efficient system for approving and registering coverholders.
AIR Worldwide said it has developed a probabilistic model for cyber risk that is capable of accounting for security breach and cloud service provider downtime incidents for insurance portfolios worldwide.
The catastrophe risk modeling firm said its probabilistic cyber model estimates the likelihood, severity, and economic and insurance impact of security breach and cloud service provider downtime incidents. AIR said that cloud service provider downtime incidents are one of the most likely forms of aggregation risk for cyber.
The new AIR cyber model was shaped with public, commercial and insurance claims data that includes information on more than 60,000 worldwide incidents and the cybersecurity profile of over 100,000 organizations globally, according to AIR. It will be included in the latest release of Analytics of Risk from Cyber (ARC), AIR’s cyber risk modeling and analytics platform, which is due for general release on Oct. 31, 2018.
The London Market Group (LMG) will work with Sequel, an insurance/reinsurance software specialist, to develop a faster and more efficient system for approving and registering coverholders.
They’ll also come up with a new integrated tool for generating delegated authority binder contracts.
This is a core part of the London Market Target Operating Model and will replace the existing Atlas (the Lloyd’s Coverholder Approvals and Compliance system) and the Binding Authority Registration (BAR) system.
LMG said authorized users will benefit from enhancements including:
The LMG is a marketwide body, bringing together the specialist commercial insurance and reinsurance broking and underwriting communities in London. It is supported by the International Underwriting Association of London (IUA), Lloyd’s of London, the Lloyd’s Market Association (LMA) and the London & International Insurance Brokers’ Association (LIIBA).
Sources: AIR Worldwide, the London Market Group