Global re/insurance broker Aon has announced the launch of a new reinsurance solution, backed with $350 million capacity, designed to help carriers navigate the consequences of silent cyber.
Silent cyber can occur when other types of insurance or reinsurance products fail to explicitly exclude cyber risks, which could result in an accumulation of cyber losses within other policies.
It’s something the market has been talking about for a long time, and which finally happened with the $10 billion and $4 billion-rated loss events inflicted by the NotPetya and WannaCry ransomware attacks respectively.
In response, Aon has created a silent cyber policy it hopes will enable carriers to identify, analyse and mitigate their exposure and provide a cash solution to reinsure the exposure in the interim period.
The solution is supported by an analytical, end-to-end process to help insurers identify their exposures through wording and threat analysis while providing bespoke scenarios in order to quantify any vulnerabilities.
“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,” explained Aon’s Global Head of Cyber Innovation, Luke Foord-Kelcey.
“Most importantly, 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.”