Aon launches $350m silent cyber solution to boost market confidence over risk

Aon has launched a silent cyber reinsurance facility with $350m of capacity for exposures across multiple lines of business. The cyber clash reinsurance will protect silent exposures. But once they are identified, Aon will work with insurers to underwrite and reinsure cyber exposures across multiple lines of business, or exclude cover from individual portfolios. “This will create more efficient reinsurance structures, while empowering clients to strategically underwrite cyber risk across all lines of their portfolios with greater certainty,” Aon said. It explained that the initial capacity has been sourced from reinsurers in Bermuda, London and Europe. Insurers are under increasing pressure to identify, quantify and mitigate the emerging and increasing risk of silent cyber exposures, not least from regulators. Aon said it will partner with insurers as they work through this process by using data and analytics, using its expertise and cyber models provided by Guidewire and Cyence Risk Analytics. Aon said its new solution will “help insurers obtain more clarity on their cyber exposures with the option to exclude or recognise the exposure in each portfolio, and evolve its reinsurance protections for cyber accordingly”. The launch follows last week’s appointment of Luke Foord-Kelcey as global head of cyber innovation for Aon’s Reinsurance Solutions business. Mr Foord-Kelcey said: “Our process-led and forward-looking approach to assessing, quantifying and transferring silent cyber will lead to improved coverage, pricing and capacity through robust, modelled results and strong reinsurer partnerships.” He added that the ultimate aim is to mitigate silent cyber risks. “It is about how we end the ‘silence’, strengthen the cyber re/insurance market and make it future-proof with more transparency, opportunities for growth and enhanced protection across the value chain.” Also last week, catastrophe modelling firm AIR Worldwide (AIR) and Capsicum Re announced a partnership to identify silent cyber exposures across insurance portfolios at industries most at risk. The companies said they will develop models to simulate incidents that could lead to silent cyber losses. “There’s a lot of uncertainty surrounding cyber risks and these could result in losses for property, professional, marine, and other non-cyber lines of business,” said Scott Stransky, assistant vice-president and director of emerging risks modelling at AIR. “The models we’re developing in collaboration with Capsicum Re can help the insurance industry assess and quantify silent cyber risks appropriately,” he added. “Given the rapidly evolving nature of cyber risk, it’s likely that insurance policy wordings will be challenged to keep up, and some forms of silent cyber exposures could always exist,” said Ian Newman, global head of cyber at Capsicum Re. “Our goal is to better advise insurers and reinsurers about the nature of cyber risk and help the industry develop innovative risk-transfer solutions that truly reflect the underlying risk exposure.”

Aon launches $350m silent cyber solution to boost market confidence over risk

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

US insurers expected to increase casualty pricing as social inflation rises

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

US insurers expected to increase casualty pricing as social inflation rises

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

US insurers expected to increase casualty pricing as social inflation rises

Related Articles