During Swiss Re’s press briefing at RVS Monte Carlo 2023, Gianfranco Lot, Swiss Re’s Chief Underwriting Officer, Property & Casualty Reinsurance, explained that cyber insurance is yet to evolve to the same levels as property cat.
Within their property cat line, the reinsurance giant uses models that allows them to understand the overall aggregation risks more better.
However, Swiss Re is also continuing to invest into it’s cyber line of business as it continues to grow across the industry.
“We are investing a lot into understanding the aggregation of losses that concern this line of business,” Lot said.
“Cyber attacks have increased dramatically over the past couple of years and certainly the war in Ukraine has not helped in reducing the number of cyber attacks.”
“We are watching this line very carefully as it is poised to grow over the next few years.
“We estimate around 20% compound annual growth rate over volume, which is today around 14 billion on market.”
He added that half of those 14 billions are reinsured, which clearly shows that it remains to be a line of business which is still within its infancy stages as the risks are shared with the reinsurer proportion.
“Contract certainties are also really important. The definition of what is actually malware, ransomware, and even warfare, there are many discussions surrounding how to find the scope of cover for cyber insurance.
“We are an active discussion partner, and we are often exchanging with our clients part intensively around making sure that this product becomes insurable and that it’s insurability will be on a sustainable basis.”
In addition, Swiss Re also stated during the brief that they are not expecting to see big shifts in attachment point strategy in the coming renewals.