The Australian Prudential Regulation Authority (APRA) has released a letter consulting general insurers on a proposal to separately collect cyber insurance and management liability data within the National Claims and Policies Database (NCPD).
APRA asks general insurers for their views on the proposed start date for the revised data collection, the inclusion of three new cause of loss codes, treatment of historical data, and the publication of data in the NCPD data collection.
The regulator facilitated the inclusion of two new product classes - cyber insurance and management liability - and three causes of loss codes within the NCPD data collection. Meanwhile, the proposed causes of loss codes are based on standalone cyber insurance features: Cyber – first party loss, Cyber – third party loss, and Cyber - other.
“Given the recent growth in cyber insurance products and the limited availability of data to assess performance and make pricing decisions for these two products, APRA now proposes to include cyber insurance and management liability in the NCPD data collection as standalone categories,” APRA said in its letter.
“APRA is proposing to begin collecting data from insurers on cyber insurance and management liability products, and the three causes of loss codes, for the December 31, 2020, half-yearly reporting period on a best endeavours basis, with full implementation from the June 30, 2021, half-yearly reporting period within the NCPD reporting forms.”
The proposed changes to data collection will be subject to a six-week public consultation period. The written submissions must be addressed to “Manager, Regulatory Reporting, Data Analytics” and sent to [email protected] by December 17, 2020.
