Cyber Risk Modelling
Accessing and quantifying affirmative & non affirmative cyber risks and the accumulation of exposures
The Challenge
One of the world’s most valuable resources according to the Economist is now data. It is this data stored on millions of servers that becomes a target for cyber criminals.
In 2017, the NotPetya and WannaCry ransomware attacks shook the world and caused a total of $14 billion in economic damage. By November of 2018, the insurance and reinsurance industry loss caused by just NotPetya had surpassed $3 billion, and insured losses were predicted to grow by over 30% as the tail developed.
Accessing and quantifying affirmative cyber risks and the accumulation of exposures is a significant challenge for insurers and reinsurers.
There is also the challenge of non-affirmative cyber risk sometimes called silent cyber risk. Silent cyber refers to potential cyber-related losses stemming from traditional property and liability policies that were not specifically designed to cover cyber risk.
Unlike the specialist standalone cyber insurance products that are available in the market today, traditional liability policies were not designed with cyber exposures in mind and therefore may not implicitly include or exclude cyber risks.
This coverage ambiguity can result in a silent cyber scenario, whereby an insurer may have to pay claims for cyber losses off a policy not designed for that purpose.
The Solution
The Kovrr’s cyber risk modelling platform delivers global (re)insurers transparent, data driven insights into their affirmative and non-affirmative cyber risk exposures.
The Kovrr platform is designed to help underwriters, exposure managers and catastrophe modelers understand, financially quantify and manage cyber risk by utilizing AI-powered risk models
Key Features & Main Benefits
Cyber Underwriting & Risk Selection
Contextual Actionable Underwriting Insights
Understand the projected insured attritional loss of specific risk scenarios such as data theft, denial of service, ransomware, extortion, etc.
Efficient Prosepecting
Pinpoint potential clients for cyber insurance within your existing P&C portfolios.
Comprehensive Data Acquisition & Augmentation
Pinpoint potential clients for cyber insurance within your existing P&C portfolios.
Portfolio Exposure Management
Proprietary Cyber Catastrophe Modelling Framework
Kovrr’s framework is based on an extensive analysis of the characteristics of historical cyber risk events including triggers, propagation and impact.
Silent Risk Exposure
Gain visibility to risk associated with potential cyber triggered claims within any commercial P&C insurance book.
Visibility into Potential Accumulations & Tail Events
Achieve clear visibility to probable maximum losses due to potential large loss and catastrophic cyber events.
Monitoring Portfolio Aggregations
Calculate aggregated exposure to cyber risk in your portfolio while taking into account systemic risk stemming from different types of policies within various lines of businesses.
Insights into New Emerging Vulnerabilities
The Kovrr platform reflects emerging exposures and allows (re)insurers to control risk accumulation by notifying them when pre-defined risk thresholds are crossed.
Stress Test any P&C Portfolio Against Cyber Catastrophes
(Re)insurers can assess their cyber exposure in any type of (re)insurance’s book using a list of predefined scenarios, both historical and synthetic. They can also custom build their own scenarios.
