Allianz Global Corporate & Specialty (AGCS), a division of global insurer Allianz, has teamed up with Cyence in order to bolster its international cyber risk analysis capabilities.
Under the new partnership, Cyence, a cyber risk analytics and modelling company, will combine its cyber analytics platform with AGCS’ underwriting processes, ultimately enabling the insurer to better assess its cyber risk at company level for large businesses.
As a result, AGCS will be able to develop a comprehensive understanding of its cyber exposures, enabling it to tailor protection to fit customer demands.
Furthermore, AGCS and Cyence will work together to develop a new predictive modelling platform for cyber-driven business interruption (BI) exposures. And, in another initiative, the insurer has announced plans to integrate Cyence’s cyber risk analytics into new, innovative digital distribution platforms, which offer low-touch, automated underwriting of cyber policies for medium-sized firms.
AGCS Board Member, Hartmut Mai, commented; “We are moving our underwriting approach from hindsight to foresight. The future of underwriting and practical risk management will be based on the intelligent use of technology and data.
“AGCS has always been known for its industry-specific expertise, but going forward we must complement our technical know-how and experience with extensive data-driven insight and predictive modelling if we want to keep ahead of new risks such as cyber, supply chain, or emerging liability exposures. After an extensive evaluation of various partners, AGCS is excited to partner with Cyence for their market leading capabilities.”
The cyber threat appears to be growing across the world, impacting more and more industries, with the potential costs of breaches being huge. In light of increased vulnerability, there’s been growing demand for cyber protection, and the new partnership is in response to both the increased demand and the changing cyber risk landscape.
Cyence Chief Executive Officer (CEO), Arvind Parthasarathi, commented; “We are excited to be partnering with Allianz to understand and model cyber risk and grow this important coverage line. The progression of global cyber regulation and evolution of the risks businesses face make it more important than ever for companies of all sizes, industries, and geographies to review their cyber security and resilience safeguards, and consider cyber insurance as part of a robust risk management strategy.”
Commenting on the automated cyber underwriting capabilities and the future development of a new cyber model, AGCS’ Global Head of Financial Lines, Bernard Poncin, added; “We enhance our own cyber underwriting expertise with Cyence’s models to allow for automated risks assessment, quotation and delivery of cyber policies for medium-size companies.”
“The new model will help us to much better measure the cyber BI and CBI exposure which is becoming a key concern for our clients and could lead to peak-loss scenarios such as widespread disruption of critical infrastructure or networks.”