Property Claim Services (PCS), a Verisk business, has enhanced its PCS Global Cyber service with coverage for cyber catastrophe events. The inclusion of events with multiple insureds spanning both affirmative and silent cyber addresses industrywide insured losses of at least $250 million and is now available for existing PCS Global Cyber users.
PCS Global Cyber was launched in Sept. 2017 with a plan to add a cyber catastrophe component that addresses both affirmative and silent cyber down the road. The service goes live with an industry loss for the 2017 Petya/NotPetya event and will add future events as they arise.
PCS said this addition to PCS Global Cyber enables insurers, reinsurers, and other stakeholders in the global risk and capital supply chain to gain access to an unbiased view of broad cyber catastrophe events around the world. Additionally, they can use the index to facilitate reinsurance and alternative risk-transfer transactions, an area where the need for a loss aggregation service has been palpable.
According to Tom Johansmeyer, cohead of PCS, the latest iteration of PCS Global Cyber helps risk bearers address any silent exposure they may have lurking in their portfolios while also taking an active approach to the cyber business they purposely write.
“We believe that the prevalence of affirmative or silent cyber risk will fluctuate in the years to come as the market evolves and losses occur. So, rather than take a view that one approach will emerge, the PCS team has worked closely with the market to develop a loss index suite that will serve the market as cyber continues to evolve,” Johansmeyer said.
Johansmeyer continued, “The launch of cyber catastrophe loss estimates provides another mechanism for fueling industry growth through ILW [industry loss warranty] trading, especially when it comes to accessing capital markets capacity.”
PCS Global Cyber has estimates for 13 affirmative events, with seven coming since the launch of the service a year ago. Additionally, it now includes an industry cyber catastrophe loss for Petya/NotPetya. The full historical database is complete and ready for use, as is the process for developing future estimates.
Beginning in 2017, PCS entered the global specialty lines space, launching PCS Global Marine and Energy, PCS Global Cyber, and PCS Global Terror in the first quarter of 2018.
Verisk is a data analytics provider serving customers in insurance, energy and specialized markets, and financial services.
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