(Image credit: The Digital Artist.)
Global specialty insurer Hiscox (Bermuda/London) has signed an agreement with CyberCube (San Francisco) for use of the vendor’s technology to generate better insight into potential systemic cyber risk. The deal gives Hiscox access to CyberCube’s Portfolio Manager product, which will stress test Hiscox’s book of global commercial insurance business against a range of cyber-related catastrophe scenarios, such as cloud outages and global ransomware attacks.
“We invest a great deal in understanding the risks we are exposed to,” comments Robert Caton, Director of Underwriting Risk, Hiscox. “Cyber is an area where the potential for accumulation risk is easy to visualize and describe but challenging to size and calibrate as there have been few if any truly catastrophic market-wide losses. Partnering with CyberCube to access its modelling tools, data, an
d specialists perfectly complements the internal expertise and capability we have developed over the past few years.”
CyberCube describes its risk-modelling platform as enabling insurance market participants to strengthen their accumulation risk management and exposure measurement. The vendor’s technology addresses the issue of cyber risk experienced by carriers globally as they seek to identify and quantify cyber risk in both standalone cyber insurance products and individual classes of business such as property.
Core Part of an Insurer’s Toolkit
“As cyber risk becomes more prevalent within the insurance market—and indeed the wider world—analytics tools like those offered by CyberCube are becoming a core part of an insurer’s toolkit,” comments Pascal Millaire, CEO, CyberCube. “We’re delighted to be partnering with Hiscox to provide insights from our risk model to augment Hiscox’s existing capabilities as a leading specialist insurer.”