Ariel Re has decided to implement analytics platform Portfolio Manager into its organisation.
The software, from CyberCube, is a scenario-based data-driven model that enables risk professionals to develop insights for their senior leadership and teams. Portfolio Manager stress tests portfolios of insurance and reinsurance risks against a range of systemic cyber-related scenarios, including data breaches, cloud outages, global ransomware attacks, and financial fraud.
Ariel Re is another recent adopter of Portfolio Manager, following Fermat Capital Management announcing in February that it was also using the software, alongside Corvus in November and Tokio Marine in August. Among the investors in CyberCube and its software is Lockton Re, which expanded its relationship with the company through an investment in Portfolio Manager in February 2021.
Daniel Carr, head of cyber at Ariel Re, said: “Deeply analysing, quantifying and managing our exposure is critical to the success of our business and is at the heart of Ariel Re’s heritage – cyber is no different.
He added: “I have been closely involved with the cyber and modelling industry over many years, and I have seen many solutions come to market claiming to solve a range of cyber modelling challenges. CyberCube’s Portfolio Manager is the most mature offering and is widely adopted by our cedant and partners alike. This alone improves our collective ability to communicate risk across a common framework, which we believe is key to the market’s ability to grow following a period of volatility and rapid rate movement.
He went on: “We are excited to partner with the team at CyberCube to not only manage our own exposure, but to also bring these capabilities to bear in the development of new reinsurance capital solutions for cyber risk – notably targeted at cyber catastrophe and systemic risk.”
