Guy Carpenter, the reinsurance arm of global broker Marsh, has established a partnership with insurtech RiskGenius to help evaluate potential silent cyber exposure.
The partnership will provide clients with a means of assessing their silent cyber exposure at scale, while generating risk insights designed to support a greater understanding of silent cyber at an industry level.
Guy Carpenter notes how the NotPetya and WannaCry events of 2017 highlighted the potential catastrophic impact of silent cyber within non-cyber lines of business.
To address this challenge, the company says re/insurers require an effective means of qualifying and quantifying the risk of silent cyber across their whole portfolios.
Furthermore, the ongoing litigation demonstrates the importance of attaining clarity on the coverage, and the costs to both sides if this issue is not resolved.
Guy Carpenter says standalone cyber insurance grew to $6.4 billion in 2019 and is expected to continue to grow to $20 billion by the year 2025.
These market movements are described as having reinforced the need for the re/insurance industry to develop new cyber products so the industry can respond with innovative risk transfer options as cyber exposures continue to expand.