Willis Re, the reinsurance business of Willis Towers Watson, the global advisory and broking company, has upgraded its cyber risk portfolio modeling tool PRISM-ReTM to include “silent cyber.”
Willis Re defines “silent cyber” as potential cyber-related losses resulting from insurance policies not specifically designed to cover cyber risk – in industry segments such as property, other liability, auto and workers compensation.
First launched by Willis Re in February 2015, PRISM-Re is designed to help clients manage their cyber portfolios and estimate downside risk arising from privacy breach and network outage following a cyber attack, Willis Re said in a statement.
The 2018 update to PRISM-Re offers the insurance market access to the stochastic modeling of cyber losses on a worldwide basis, arising from insurance policies not specifically designed to cover cyber risk.
The latest version of the tool helps insurers and reinsurance buyers more effectively manage their cyber risk exposure across their entire portfolio of property and casualty business, said Willis Re.
The model incorporates the likelihood of a loss resulting from silent cyber and overlays this against client-specific non-cyber limits profiles and loss severity curves to generate a full loss distribution for silent cyber loss potential in isolation, or in conjunction with affirmative cyber loss.
“Silent cyber is a leading concern for the insurance industry at every level, including management, boards of directors, regulators and rating agencies,” said Mark Synnott, Global Cyber Practice leader, Willis Re.
“Recent events have exacerbated the threat that cyber poses to insurers across their non-life portfolio…,” he added.
“Our model can now generate a full probabilistic frequency and severity loss distribution for silent cyber loss potential in isolation, or in conjunction with affirmative cyber and allows insurers to monitor changes in cyber exposure composition at different probability levels,” commented Jess Fung, head of Cyber Modeling, Willis Re.
“We believe it will further improve the ability of our clients to model and manage the large and growing cyber threats that we face,” he went on to say.
Source: Willis Re
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