Capsicum Re launches new ransomware modelling solution

Specialist reinsurance broker Capsicum Re has launched a new modelling solution to quantify rapidly expanding ransomware exposure threat.

The model, called Gh0st, is designed to help clients and markets quantify diverse and realistic ransomware scenarios and optimise their portfolios in a rapidly changing and challenging cyber claims environment. It will enable both portfolio aggregation and attritional loss perspective through consideration of specific ransomware strains.

Capsicum Re said insurers are facing the ‘perfect storm’ of an increasing frequency of ransomware events, larger extortion payments and longer periods of business interruption.

The new model will allow clients to input all their affirmative cyber policies and extract a true picture of exposure by explicitly modelling all the first party costs arising from a widespread ransomware event, such as business interruption or replacement of affected hardware from ‘bricking’.

Justyna Pikinska, head of analytics, property and specialty lines, at Capsicum Re, said: “We believe our Gh0st ransomware model represents a powerful addition to our analytics armoury. It further enhances our ability to service clients, helping them to not only better quantify cyber risk but also monitor their exposure to the specific, expanding threat of rapidly weaponised ransomware.”

Ian Newman, Capsicum Re’s global head of cyber, added: “The rising frequency and scale of ransomware attacks poses a clear and present danger to the global insurance industry, which Gh0st addresses head on. By allowing clients to calibrate ransomware scenarios to their portfolio size and appetite, it’s a prime example of how our specialist analytics practice is taking proprietary knowledge, extensive market research and threat actor analysis and transforming them into practical solutions that address and inform insurers’ rising cyber exposure.”

Rupert Swallow, Capsicum Re CEO, said: “Gh0st is yet another future-focused development for Capsicum Re’s award-winning cyber team. Amidst global warnings of businesses’ heightened vulnerability to cyber-attack due to the unprecedented switch to remote working, and Lloyd’s own increased scrutiny of cyber risk - by adding ransomware to its list of realistic disaster scenarios - innovative modelling solutions like this one are clearly needed. Thanks to our team’s hard work, Capsicum Re is able to deliver on what is a very real demand.”