AM BestTV at RIMS: A Key to Underwriting Cyber Risk Is Getting the Right Data, Says Panel

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FOR IMMEDIATE RELEASE

OLDWICK - MAY 06, 2019 01:17 PM (EDT)
In this ^AMBestTV episode at the Risk and Insurance Management Society, Inc.’s (RIMS) conference in Boston, MA, a panel examines the state of cyber risk modeling, including how insurers are learning to deal with so-called silent cyber and other developments. Click on http://www.ambest.com/v.asp?v=cyberpanel419 to view the entire program.

Michelle Chia, senior vice president, head of specialty products, errors and omissions, Zurich North America, highlighted what she sees as the greatest challenges in understanding and managing cyber risk.

“Definitely simplifying is one of those things that we need to do more when it comes to cyber risk,” said Chia. “The other thing that is really challenging for customers and companies is that as technology continues to evolve, cyber risk also evolves. … As the world becomes more interconnected, there is an increase in reliance upon protecting not only yourself but all those in your ecosystem, as well as identifying what those potential challenges will be in the future due to innovation.”

Adapting cyber policies to account for silent risk exposures remains a challenge for underwriters.

“It is this risk of cyber incidents that causes loss to non-cyber policies,” said Scott Stransky, assistant vice president, AIR Worldwide. “All the clients that we talk to are very concerned about this type of risk because it is not quantifiable. … Our view is that over time there is going to be less and less of this silent cyber. It is either going to be covered under a pure cyber policy that covers everything, or it will be put back into the individual risks.”

Other people that appear in this episode:

• Erica Davis, senior vice president, Zurich North America.

For full video coverage of RIMS, including exclusive executive interviews, visit http://www.ambest.tv/rims19 .

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^AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.