During Swiss Re’s press briefing at RVS Monte Carlo 2023, Gianfranco Lot, Chief Underwriting Officer of Swiss Re, Property & Casualty Reinsurance, explained that cyber insurance has not yet developed to the same level as property cat.
Within their property cat line, the reinsurance giant uses models that allow them to better understand the overall risks of aggregation.
However, Swiss Re also continues to invest in this line of cyber business as it continues to grow across the industry.
“We invested a lot in understanding the aggregation of losses related to this line of business,” said Lot.
“Cyber attacks have increased significantly in the last two years and certainly the war in Ukraine has not helped to reduce the number of cyber attacks.”
“We’re keeping a close eye on this line because it’s poised to grow over the next few years.
“We estimate around 20% compound annual volume growth, which is now around 14 billion in the market.”
He added that half of the 14 billion is reinsured, which clearly shows that it remains a line of business that is still in its infancy stages because the risks are shared proportionally with the reinsurer. .
“Contract assurances are also important. The definition of what exactly is malware, ransomware, and even warfare, there are many discussions surrounding how to find coverage for cyber insurance.
“We are an active partner in the discussion, and we are constantly communicating with our clients around ensuring that this product will be insurable and that this insurability will be sustainable.”
In addition, Swiss Re also stated during the short term that they do not expect to see major changes in the attachment point strategy in future renewals.