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TigerRisk to adopt AIR’s cyber risk modelling platform

14th December 2018 - Author: Matt Sheehan

Reinsurance brokerage, risk and capital strategic advisory firm TigerRisk Partners LLC has announced that it plans to adopt catastrophe risk modeller AIR Worldwide’s cyber risk analytics platform, ARC.

tigerrisk-logoTigerRisk intends to grow its cyber risk reinsurance offering using the platform, which is designed to inform risk selection, pricing, portfolio management and risk transfer.

ARC enables users to quantify the potential financial impact from either security breach or cloud service provider downtime, and is calibrated with public, commercial and insurance claims data from more than 77,000 cyber incidents and the cyber security profiles of more than 100,000 organisations.

“Cyber is not only the fastest growing risk for many of our clients, it is also one of the most challenging to understand,” said Nathan Schwartz, Head of Analytics at TigerRisk. “AIR’s new probabilistic cyber model will help us analyze our clients’ cyber exposure and provide valuable insights on how to protect their portfolios.”

“AIR’s unmatched combination of a detailed cyber risk model for security breach, service provider downtime, and other causes of loss, plus a rich cyber industry exposure database of over 12.4 million organizations, as well as its transparent and flexible modeling framework, will enable us to effectively manage our clients’ risk from cyber,” Schwartz continued.

Data from Jupiter Research shows that cybercriminals stole some 12 billion U.S personal and company record in 2018, while a recent IBM study estimated that the average cost of a data breach for U.S companies is $7.9 million.

New research by Lloyd’s and AIR also estimates that insured losses of $3 billion could be incurred if a large cloud provider were to go offline for three to six days.

“We’re thrilled to be collaborating with TigerRisk,” said Scott Stransky, Assistant Vice President and Director of Emerging Risk Modeling at AIR Worldwide. “As insurers continue to write more cyber, they become increasingly vulnerable to portfolio aggregation risk, especially among cloud service providers.”

“With ARC, TigerRisk will realize immediate value in being able to leverage detailed technographic data to better understand their clients’ exposures as well as estimate the loss potential from attritional cyber events,” he added.

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