Aon adopts Guidewire technology to mitigate cyber accumulation risk

Global re/insurance broker  Aon has implemented  Guidewire’s Cyence Risk Analytics risk selection and accumulation management products to help clients better quantify their risks and improve cyber insurance underwriting.

Aon hopes that by leveraging Guidewire’s extensive cyber data listening and modelling collection capabilities, it will be able to more effectively model client portfolios and develop new solutions that directly address specific needs around underwriting and reinsuring cyber risk, while helping to mitigate their key exposures, including cyber accumulation and ripple effects – such as business interruption, higher premiums, and new legislation.

The broker noted that a series of high-profile events in 2021 has reinforced re/insurers’ concerns about the systemic potential of cyber attacks, and the rapid rise of ransomware events has pushed re/insurers to reassess rates, terms and conditions, and underwriting standards.

“The risk of ransomware and other types of cyber attacks has risen dramatically, and so we are augmenting our capabilities to bring even more timely and actionable insights to our clients,” said Jon Laux, head of cyber analytics for Aon’s Reinsurance Solutions. “In this regard, Guidewire Cyence provides us with advanced analytical solutions to measure the financial impact of cyber risk, mitigate current and future incident trends, and help clients make better decisions around pricing, risk selection, aggregation, and management.”

Paul Mang (pictured), chief innovation officer of Guidewire Software, commented: “We admire Aon’s use of Cyence to further its work to help clients reduce volatility and build more resilient businesses, governments, and communities. We are pleased by their vote of confidence in our cyber capabilities and look forward to infusing data analytics to help Aon’s clients navigate the volatility in a rapidly changing cyber insurance and reinsurance market.”

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