CyberCube will tackle cyber exposure with new database

A new Industry Exposure Database coming soon from cyber risk analytics provider CyberCube will give the re/insurance industry a unique overview of its exposure to cyber risk.

The database is currently in beta testing and is scheduled for release in the next four to eight weeks. CyberCube has started by focusing on the North American market, and the next iteration, scheduled for release in early 2023, will look at the European market too.

“It’s essentially a way of modelling the total industry’s exposure to cyber,” said Chris Methvan (pictured), chief growth officer at CyberCube. “It allows re/insurers to compare their exposure to different types of catastrophic loss to the wider market so they can calibrate their portfolio.

“It will also be useful for different types of insurance-linked securities (ILS) structures that are looking at industry loss warranties, for example, which rely on an industry exposure database to provide a benchmark.”

He added: “We’re excited because we think we’re uniquely placed to be able to do it, given the critical mass of clients we have. We have a unique opportunity to play the role of providing that market standard in a way that other organisations have for natural catastrophes.”

Also scheduled for release in the second half of the year is CyberCube’s enhanced Broking Manager offering.

“It’s going to allow them to have a discussion with clients and their insurers about how they prepare for renewal,” said Methvan.

Broking Manager is used by nearly 40 of the top 100 retail brokers for cyber. The enhanced version will help brokers guide clients on where cybersecurity efforts should be focused—for example, whether to spend money on controls, or to put time and effort into improving their cyber hygiene.

“It will help them identify the items that are going to give them the biggest bang for their buck in terms of the eyes of an underwriter,” said Methven

“It’s a unique proposition in the context of a tool brokers use to help them sell cyber insurance.”

On the hot topics of discussion at Monte Carlo this year, Methven said: “In terms of the cyber re/insurance market, it’s three things. One is aggregation and, as the class has grown, people wanting to get comfortable with tail risk.

“The second is the threat landscape, with the war in Ukraine in particular, but also with some of the other points of conflict around the world.

“The third topic is capacity: if the market is going to reach its potential, we need to bring new capacity into the market, be that traditional reinsurance or secondary capital markets, ILS, etc,” he concluded.