Guy Carpenter & Company has entered into a formal license agreement with CyberCube Analytics following a two year strategic partnership that delivered the industry’s first cyber risk modelling platform with an inside-out view of cyber exposure.
CyberCube, which was formerly part of Symantec Corporation and is backed by investment from Trident Capital Cybersecurity, announced the launch of the risk modelling platform – its first product – in March 2018.
Guy Carpenter plans to use the new stochastic cyber catastrophe model and related intellectual property to deliver innovative cyber reinsurance solutions to its clients and prospects.
The platform helps re/insurers make more informed decision when underwriting cyber risk by applying multidisciplinary analytic methods and leveraging exabytes of unique data.
CyberCube also utilised technology assets contributed by Symantec, which were developed in collaboration with Guy Carpenter and a select group of re/insurers, and which provide a proprietary data feed to augment the new risk model.
Claude Yoder, Guy Carpenter’s Global Chief Innovation and Product Development Officer, commented: “Guy Carpenter is excited to offer our clients and prospects this exciting new tool to help manage and assess cyber risk.
“The powerful combination of our knowledge of (re)insurance dynamics and the evolution of the product and macro-systemic industry concerns, coupled with CyberCube’s expertise in data science, cyber security, software engineering and actuarial modeling, will deepen the industry’s understanding of this rapidly evolving risk.”
Guy Carpenter’s Cyber Solutions Specialty Practice also supported the development of the new model by focussing the scope of required inputs for the data schema and by helping the platform conform to the needs of re/insurance clients.
Additionally, it encouraged transparency throughout the platform’s development and provided stress tests of the user interface and model output.
Pascal Millaire, Chief Executive Officer (CEO) of CyberCube, said: “Cyber is one of the most important risks facing society in the 21st century and therefore it is one of the most important risks facing the insurance industry.
“Our strategic alliance with Guy Carpenter over the past two years, coupled with continued interactions with their cyber practice, has deepened our understanding of the specific needs of the insurance/reinsurance cyber market, uniquely positioning CyberCube to help insurers underwrite cyber risk and model cyber aggregation in a way that no one else can.”
Headquartered in New York, Guy Carpenter is a global risk and reinsurance specialist and wholly owned subsidiary of Marsh & McLennan Companies.