First-if-its-kind Cyber Risk Modeling Platform licensed by Guy Carpenter

Guy Carpenter & Company announced on 30 April that its two-year strategic relationship with CyberCube Analytics, formerly part of Symantec Corporation, has produced the industry's first cyber risk modeling platform with an inside-out view of cyber risk exposure.

The company also entered into a formal license agreement with CyberCube to leverage its new stochastic cyber catastrophe model and related intellectual property to deliver innovative cyber reinsurance solutions to its clients and prospects.

Backed by investment from Trident Capital Cybersecurity and utilizing technology developed by Symantec Corporation - the world's leading cybersecurity company - the new risk modeling platform leverages exabytes of unique data and applies multidisciplinary analytic methods to help insurers make more informed decisions when underwriting cyber risk and managing cyber risk aggregation. The Symantec-contributed technology assets were developed in collaboration with Guy Carpenter and a select group of (re)insurers and provides a proprietary data feed to augment the new risk model.

"Guy Carpenter is excited to offer our clients and prospects this exciting new tool to help manage and assess cyber risk," said Guy Carpenter's Global Chief Innovation and Product Development Officer Claude Yoder. "The powerful combination of our knowledge of (re)insurance dynamics and the evolution of the product and macro-systemic industry concerns, coupled with CyberCube's expertise in data science, cyber security, software engineering and actuarial modeling, will deepen the industry's understanding of this rapidly evolving risk."

Guy Carpenter's Cyber Solutions Specialty Practice focused the scope of required inputs for the data schema in the new model and aligned the prioritization of capabilities with the needs of insurance clients. Guy Carpenter also encouraged transparency in the platform's development, particularly with respect to frequency and severity components, to support broad market adoption of the model and provided stress tests of the user interface and model output.

"Cyber is one of the most important risks facing society in the 21st century and therefore it is one of the most important risks facing the insurance industry," said Pascal Millaire, CEO of CyberCube. "Our strategic alliance with Guy Carpenter over the past two years, coupled with continued interactions with their cyber practice, has deepened our understanding of the specific needs of the insurance/reinsurance cyber market, uniquely positioning CyberCube to help insurers underwrite cyber risk and model cyber aggregation in a way that no one else can."

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

5 basic steps to build a robust cyber security system, according Zurich Insurance

Alike any journey which, as long as it might be, begins always with a first step, developing a good cybersecurity program, as complex as this might become, begins with a number of simple, basic actions. In fact, building the cyber resilience of a company is a real journey, starting from building a culture of awareness, going through adopting a mindset of resilience so that in the end, besides having in place a business continuity plan, a disaster recovery or incident response, but also practice it on a regular basis so that it becomes a "second nature".

2019-03-20

KPMG: a guide to Intelligent Automation implementation in insurance

Insurers need to think about Intelligent Automation (AI) not as a technology implementation, but as an end-to-end business transformation that will impact the business model, operating model and ecosystem, states a recent report launched by KPMG, "The Automated Insurer: Next steps on the journey to intelligent automation."

2018-12-13

Mistakes App Developers Should Avoid

by Rilind ELEZAJ
In this techno savvy era, a smart device has become the most important instrument that performs numerous tasks in the age we are living in. Our transition and full integration of mobile technology shows that it is to here to stay and evolve.

2018-08-09

Tech-driven insurance solutions to help bridge the USD 180 billion protection gap

2017 was an extreme year for natural disasters, with total losses from natural and man-made disasters expected to amount to USD 306 billion - up from USD 187 billion in 2016. The recent disasters draw attention to the enormous gap between what's insured, and what's not - we call this the protection gap, reads an analysis published by Swiss Re as part World Economic Forum Annual Meeting.

2018-02-01

Can InsureTech survive in the GDPR era?

Insurers must be cautious in using the latest AI technologies, as GDPR introduces a series of obligations for the controllers, aimed at safeguarding the rights and freedoms of data subject. In the following article, we will address the most significant risks that the use of such technologies pose from the perspective of data protection.

2017-12-14

Insurance digitalization: how to avoid disapointment?

Price pressure is the biggest barrier to revenue growth, said almost half of the 46 global insurers interviewed by Simon-Kucher & Partners for the 2017 Global Pricing and Sales Study. A third of them also stated that most planned price increases are slashed or not implemented at all.

2017-11-23

How technology impacts the insurance sector

Rather than merely adding value to the insurance sector, technology and technical innovations are now determining its very growth and evolution. The last few years have seen mobile devices, GPS functionality and social media engagement impact hugely as to how insurance claims are processed by companies and policies assessed by insurance agents. Analysis of data and the value of legitimate customer interactions is more important than ever and have helped insurance companies to maximize profits while keeping the customers happy.

2017-08-17

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all