Major cyber insurers form company to enhance risk mitigation
Seven leading cyber insurers have announced that they have formed a company to enhance cyber threat and risk mitigation efforts in response to a rising number of cyber threats and insurance claims.
Formed by AIG, AXIS, Beazley, Chubb, The Hartford, Liberty Mutual Insurance and Travelers, the new company, named CyberAcuView, aims to compile and analyse cyber-related data to enhance value and service to policyholders. It also plans to help insurers sustain a competitive cyber insurance market.
CyberAcuView’s activities will be “conducted under strict antitrust review and guidance”, with Mark Camillio, Head of Cyber, EMEA at AIG, being appointed as the company’s CEO.
How does CyberAcuView plan to monitor cyber risks?
According to the seven founders of the company, CyberAcuView will monitor and mitigate cyber risks in several ways. These include providing industry best-practices to improve resilience to cyber risk; proactively engaging with regulators, law enforcement, and other security agencies to counter cybercrime and the rapid rise of ransomware; developing systemic risk solutions and advancing cyber policy language to improve market efficiencies; and analysing cyber trends to provide enhanced visibility on cyberattacks and the causes of loss so that insurers can identify critical controls and educate policyholders on loss prevention strategies.
In addition to Camillo, the company’s CEO, other members joining the company include Monica Lindeen as Director of Regulatory Affairs, and FBI veteran and former Chief Operating Officer of the National Insurance Crime Bureau (NICB), James Schweitzer, who will become the company’s Director of Law Enforcement Engagement.
Commenting on the cybersecurity industry, Mark Camillo said: “The cyber landscape continues to evolve with coordinated attacks becoming more frequent and disruptive. Combining resources from across the insurance industry will allow us to better understand cyber trends, anticipate and potentially mitigate future attacks, and help improve overall cyber resilience”.
James Auden, Managing Director of the American credit rating Agency Fitch ratings, talked about U.S. insurers’ responses to a spike in cyber claims.“The cyber market faced a reckoning in 2020, as loss experience deteriorated, particularly from an influx of ransomware incidents. While cyber premium rates are rising sharply, concerns remain that underwriters can successfully price this business long term”.
To solve this, analysts at the U.S credit rating agency AM Best say that insurers “urgently need to reassess all aspects of their cyber risk, including their appetite, risk controls, modeling, stress testing, and pricing, to remain a viable long-term partner dealing with cyber risk”.
