Historical Cyber Industry Loss Estimates and Risk-Transfer Index for Events Worldwide
Property Claim Services® (PCS®), a Verisk (Nasdaq:VRSK) business, has announced the enhancement of PCS Global Cyber™ with coverage for cyber catastrophe events. The inclusion of events with multiple insureds spanning both affirmative and silent cyber addresses industrywide insured losses of at least $250 million and is now available for existing PCS Global Cyber users.
From the inception of PCS Global Cyber in September 2017, the plan was always to add a cyber catastrophe component that addresses both affirmative and silent cyber. The service goes live with an industry loss for the 2017 Petya/NotPetya event and will add future events as they arise. This addition to PCS Global Cyber enables insurers, reinsurers, and other stakeholders in the global risk and capital supply chain to gain access to an unbiased view of broad cyber catastrophe events around the world. Additionally, they can use the index to facilitate reinsurance and alternative risk-transfer transactions, an area where the need for a loss aggregation service has been palpable.
Expanding the specialty lines approach developed initially for PCS Global Marine and Energy™, PCS will be able to drive more specialty lines risk loss aggregation solutions to market faster, providing insurers and reinsurers with greater flexibility, a deeper understanding of loss events, and improved response when an incident occurs.
The global insurance and reinsurance industry’s response to the launch of PCS Global Cyber has been quite strong. Developed with ongoing support from a wide range of sector stakeholders, the solution has already received considerable support.
PCS Global Cyber has estimates for 13 affirmative events, with 7 coming since the launch of the service a year ago. Additionally, it now includes an industry cyber catastrophe loss for Petya/NotPetya. The full historical database is complete and ready for use, as is the process for developing future estimates.
Beginning in 2017, PCS entered the global specialty lines space, launching PCS Global Marine and Energy, PCS Global Cyber, and PCS Global Terror™ (in the first quarter of 2018).
Source: Verisk Press Release