The International Underwriting Association’s Cyber Underwriting Group (IUA) has called for registry of claims data in a new report that highlights the need for national authorities to help address some cyber threat issues and raise awareness of liabilities.
The re/insurance industry is struggling to keep up in responding to the rapid growth of cyber threat, faced with an array of challenges including developing underwriting talent, acquiring claims data, establishing modelling techniques and securing reinsurance capacity.
The IUA’s Cyber Policy Positions paper calls for a public-private sector collaborative approach to ensure more coherent and consistent recording of cyber incidents, stating that more work needs to be done on collecting data about the frequency and cost of cyber claims.
Matthew Hogg, Underwriting Manager of Strategic Assets for Liberty Specialty Markets and Chairman of the IUA’s Cyber Underwriting Group, said; “collating data on cyber incidents is often made difficult by differing terminologies and claims notifications are sometimes put on hold as long-term investigations into the causes take place.
“The IUA’s Cyber Underwriting Group would welcome the establishment of a registry system that collects and shares statistical information on the cost and frequency of cyber losses and claims across Europe.
“Ultimately, insurance companies do not hold all of the answers. The role of government, regulators and others will be critical in establishing useful data for underwriting purposes, as well as for risk management advice.”
As part of this wider education process, the Cyber Underwriting Group recommends continued analysis of existing cyber products and extensions to traditional policies.
Hogg added that “as the market for cyber insurance matures it will be important to review any gaps in coverage and uncertainties as new threats emerge.
“Continuous professional development of insurance practitioners is also essential. We need an educated marketplace that has rigour in its approach to provide meaningful cover for all clients.”











