Zurich-based catastrophe insurance data provider, PERILS and CyberAcuView, the independent US-based organisation set-up by leading cyber insurers for the benefit of the cyber insurance market, have announced the launch of a US Cyber Industry Loss Index.
According to the announcement, the Cyber Industry Loss Index reports affirmative US primary cyber market losses resulting from systemic cyber incidents which impacts more than one insurer and more than one policyholder.
At the same time, the reporting also includes all events exceeding USD$500 million industry loss.
Another key factor to note is that the loss estimates will be released at the latest six months after the event end date, and they will be updated quarterly up to a maximum of three years after the event end date.
In addition, the loss data is also available for licensing for use in industry-loss-based risk transfer products such as Insurance Linked Securities (ILS) and Industry Loss Warranty contracts (ILW).
The loss database will also support the further development of cyber risk models over time, according to PERILS and CyberAcuView.
The cyber industry losses are based upon loss data collected from US cyber insurers. Data collection and aggregation is carried out by CyberAcuView with subsequent industry-level calculations jointly signed-off by both CyberAcuView and PERILS.
Moreover, both the initial industry loss estimate and subsequent quarterly loss updates are made available to subscribers of the newly developed PERILS Cyber Portal.
Elsewhere, it has also been confirmed that PERILS is also acting as the industry loss reporting agency for ILS and ILW transactions.
Commenting on the announcement, Luzi Hitz, CEO of PERILS, said: “The launch of the Cyber Industry Loss Index in collaboration with CyberAcuView is a key development which we hope will be of significant benefit to the market. Increasing the availability of cyber loss data is critical to the ongoing development of the cyber insurance market. Whilst the cyber market is expected to grow substantially, the potential for systemic loss events will grow in tandem. Access to loss data will become increasingly important to support sustainable capacity for the US cyber market.”
Mark Camillo, Chief Executive of CyberAcuView, added: “This is an important initiative that will help increase the flow of capital into the cyber insurance market, and help insurers provide cyber coverage to a growing number of policyholders. By combining CyberAcuView’s industry-leading cyber claims intelligence, with PERILS’ expertise as a trusted reporting agency to the alternative capital market, we have created a cyber loss index that will help accelerate the growth of the cyber-ILS and ILW markets.”