CyberCube, the leading cyber analytics provider for the insurance industry, has shared the intellectual process that shapes its cyber threat scenarios in a new paper published today.
Designing a Cyber Catastrophe offers an insight into its scenario development process as it creates new threat scenarios or refines existing ones. The scenarios allow (re)insurers and brokers using CyberCube’s products to analyse and stress test their portfolios of cyber risk.
Darren Thomson, CyberCube’s Head of Cyber Security Strategy, said: “The creation of risk scenarios is one of the most important and complex aspects of risk management in the insurance sector. It’s not a perfect means of testing an insurance portfolio but it’s a highly effective tool for insurers to deploy.”
CyberCube’s paper notes in cyber insurance, rapid change is coupled with a relatively young industry that businesses and criminals alike are keen to embrace in order to derive advantage. It states that this creates both opportunity and risk for insurers.
Laurel Di Silvestro, Principal Client Services Manager, said: “This is a challenging space as cyber is a very dynamic and fast-moving domain. A decade ago, the concept of self-driving cars, 4G/5G wireless networks, the home “internet of things”, and an automated transport network may have seemed far fetched. However, in many regions, some of these are already part of everyday life with known cybersecurity risks.”
This document explains to the market how CyberCube develops the complex scenarios against which companies can analyse their portfolios. It also shares what CyberCube practitioners have learned while building scenarios.
CyberCube’s risk-modelling platform enables insurance market businesses to strengthen their accumulation risk management and exposure measurement. Cyber risk is a major issue within the international insurance markets as risk carriers seek to identify and quantify cyber risk in both standalone cyber insurance products and individual classes of business such as property.
Last month, CyberCube issued a new version of its Portfolio Manager tool used by insurers.
Copies of CyberCube’s research are available for download from CyberCube’s website.