Zurich-based disaster insurance data provider PERILS and CyberAcuView, the independent US-based organization set up by leading cyber insurers for the benefit of the cyber insurance market, announced the launch of a US Cyber Industry Loss Index.
According to the announcement, the Cyber Industry Loss Index reports positive losses in the primary US cyber market resulting from systemic cyber incidents affecting more than one insurer and more than one policyholder.
At the same time, the reporting also includes all events that exceed USD$500 million in industry losses.
Another important thing to note is that the loss estimates are issued at the latest six months after the end date of the event, and they are updated quarterly up to a maximum of three years after the date of the event. end of the event.
In addition, loss data is also available for licensing for use in industrial loss-based risk transfer products such as Insurance Linked Securities (ILS) and Industrial Warranty (ILW) contracts.
The loss database will also support further development of cyber risk models over time, according to PERILS and CyberAcuView.
Cyber industry losses are based on loss data collected from US cyber insurers. Data collection and compilation was performed by CyberAcuView with a series of industry-level calculations jointly signed by CyberAcuView and PERILS.
In addition, both the initial industry loss estimate and subsequent quarterly loss updates are available to subscribers on the newly developed PERILS Cyber Portal.
Elsewhere, it was also confirmed that PERILS also acts as the industry’s loss reporting agency for ILS and ILW transactions.
Commenting on the announcement, Luzi Hitz, CEO of PERILS, said: “The launch of the Cyber Industry Loss Index in collaboration with CyberAcuView is an important development that we hope will have a significant benefit in the market. The increase the availability of cyber loss data is essential to the continued growth of the cyber insurance market. While the cyber market is expected to grow significantly, the potential for systematic loss events will grow in parallel. Access of lost data will be increasingly important to support sustainable capacity for the US cyber market.”
Mark Camillo, Chief Executive of CyberAcuView, added: “This is an important initiative that will help increase the flow of capital into the cyber insurance market, and help insurers provide cyber coverage to an increasing number of policyholders. Through combining CyberAcuView’s industry-leading cyber claims intelligence, with PERILS’ expertise as a trusted reporting agency to the alternative capital market, we have developed a cyber loss index that will help accelerate the growth of cyber-ILS and ILW markets.