The re/insurance industry must act together with the relevant authorities and design a common, global scale with which to accurately assess cyber loss events, according to Denis Kessler, the Chief Executive of French reinsurance giant SCOR.
“It would be very helpful to have measurement and modeling tools,” Kessler added, suggesting something akin to the Richter scale, used to measure the magnitude of earthquakes.
“Unless we can model, it’s very difficult for us to provide coverage. We have scenarios but not modeling tools.”
According to Bloomberg reports, Kessler also warned that cyber could one day become a bigger risk than natural catastrophes.
Kessler, speaking at a conference in Paris, stated that “in the worst case scenario” cyber risk could exceed $600 billion per year.
That compares with the yearly cost of natural catastrophes, which he estimated at roughly $230 billion.