PRISM-Re, the cyber risk portfolio modelling tool from reinsurance broker Willis Re, has been upgraded to now include silent cyber, providing insurers and reinsurers with a more comprehensive view of cyber exposures.
Willis Re, the global reinsurance arm of insurance and reinsurance brokerage Willis Towers Watson, first launched PRISM-Re in February 2015 in order to help insurers and reinsurers better manage their growing cyber portfolios.
Now, the reinsurance broker has released an innovative and updated version of PRISM-Re, which includes access for re/insurers to stochastic modelling of cyber losses on a global scale, that arise from policies that aren’t specifically designed to cover cyber risks, widely known as silent cyber.
Mark Synnott, Global Cyber Practice Leader, Willis Re, commented; “Silent cyber is a leading concern for the insurance industry at every level, including management, boards of directors, regulators and rating agencies. We are extremely proud to introduce a tool that provides a comprehensive assessment of an insurer’s exposure to cyber loss. In conjunction with our innovative reinsurance product, CAStL, the 2018 update of PRISM-Re allows our clients to quantify and protect their overall portfolios against cyber losses wherever they might arise.”
Willis Re explains that the model incorporates the chance of a loss resulting from silent cyber and overlays this against client-specific non-cyber limits profiles and loss severity curves. This enables the tool to generate a full loss distribution for silent cyber loss potential, both in isolation or in conjunction with affirmative cyber loss, explains Willis Re.
Willis Re published its 2017 silent cyber survey last year, and the likelihood of loss is derived from the responses of roughly 750 re/insurance industry professionals.
Jess Fung, Head of Cyber Modelling at Willis Re, added; “The addition of silent cyber to PRISM-Re represents another significant innovation by our highly skilled analytics team. Our model can now generate a full probabilistic frequency and severity loss distribution for silent cyber loss potential in isolation, or in conjunction with affirmative cyber and allows insurers to monitor changes in cyber exposure composition at different probability levels. We believe it will further improve the ability of our clients to model and manage the large and growing cyber threats that we face.”