Reinsurance News

MSK & Hannover Re unit partner for actuarially sound cyber risk pricing

20th November 2017 - Author: Steve Evans

German actuarial specialists Meyerthole Siems Kohlruss (MSK) and E + S Rück, the German unit of global reinsurance giant Hannover Re, are partnering to develop tools to assist with pricing of cyber risks.

Cyber security imageIn a two-pronged partnership, the pair are developing a pricing model for cyber risk underwriting as well as data tools to help in creating actuarially sound rates in cyber risk insurance.

The cyber insurance pricing model will be used to help E + S Rück sell cyber re/insurance products, with a focus on the corporate market using the developed cyber pricing model and a rate calculator for insurers selling cyber coverage to SME’s.

At the same time, the partnership will see MSK and Hannover Re’s German arm collecting cyber data in order to build up a data pool on cyber risks, to aid in setting actuarially sound rates.

“We help our cedants with the introduction of a cyber product for SMEs on the basis of an actuarially based tariff,” commented Karsten Faber, Head of E + S Rück and Hannover Re’s Managing Director for Germany.

MSK will utilise its relevant prior experience to assist in creating the cyber pricing tools and data. Since 2002, the actuarial consulting firm has successfully launched several data pool projects. The company also has a number of rating tools it has developed in the past.

Onnen Siems, CEO of Meyerthole Siems Kohlruss (MSK), explained that there is significant uncertainty in the calculation of risk-adequate premiums for cyber insurance and reinsurance.

“MSK will provide a solid foundation with its extensive project experience,” he said.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Aspen expects significant rate increases, 20%+ in loss-affected lines

Aspen Insurance Holdings Limited (Aspen) has said that it expects to see rate increases of up to 20% and higher...