Lloyd’s of London’s director of performance management this week called on major brokers to provide information to Lloyd’s underwriters to help track cyber exposure in a standardised fashion.
Tom Bolt, who currently holds the position of performance manager at Lloyd’s, issued the call as the market announced its intention to unveil a set of common core data requirements for cyber risks, developer in collaboration with modelling firms AIR Worldwide (AIR) and RMS with the Cambridge Centre of Risk Studies.
Both AIR and the RMS/Cambridge team are expected to highlight common elements when they publish their data schemas later this month, having agreed on similar terminology and precise definitions. The detailed schemas were developed over the course of 2015 in consultation with a cross section of brokers, (re)insurers, both London-based and international, and other model developers.
“Cyber insurance is an important new area of coverage and it is essential that we have good quality standardised data to track exposures,” said Bolt. “The RMS/Cambridge team and AIR, in consultation with the Lloyd’s Market Association, have worked with us to propose standard definitions for some common data. I have written to major brokers to ask them to endeavour to provide this data to Lloyd’s underwriters,” he added.
Bolt said that due to the growing importance of the cyber risk class, quality standardised exposure data is critical for increased levels of insurance coverage and better risk modelling.
“Models for natural catastrophe risks are well developed in the (re)insurance industry and the data requirements are relatively standardised. But in comparison, models for cyber risks are still developing and need the industry to work collectively so that risk can accurately be calculated,” he said.
