CyberCube provides risk scenarios for Lloyd's market

They allow syndicates to stress-test their portfolios

CyberCube provides risk scenarios for Lloyd's market


By Ryan Smith

Cyber analytics firm CyberCube has designed three cyber-specific scenarios to be used as part of Lloyd’s of London’s annual Realistic Disaster Scenarios (RDS) exercise.

The scenarios include a cyber power outage, a widespread malware event and a cloud outage event. They will allow Lloyd’s managing agents and syndicates to stress-test their portfolios against the risk of these events, CyberCube said.

Syndicates and managing agents using CyberCube’s Portfolio Manager will be able to run the scenarios and generate loss details for Lloyd’s. For cyber-specific RDS, CyberCube models can be used in the RDS data-gathering exercise, CyberCube said.

“This is the third year in succession CyberCube has worked with Lloyd’s syndicates to produce cyber scenario results,” said John Anderson (pictured above), senior product manager at CyberCube. “We’ve been heavily involved as a development partner to Lloyd’s and continue to ensure our Portfolio Manager product scenarios match and mirror the modelling and outputs needed for the RDS collection. The scenarios are ready and available for use today.”

Lloyd’s maintains a set of mandatory realistic disaster scenarios to stress-test both individual syndicates and the wider market. By analyzing how its portfolios of insurance risk are affected by the scenarios, the Lloyd’s market can assess each syndicate’s financial resilience, as well as the resilience of the market as a whole. Some scenarios are mandatory for all syndicates, while others must be reported if losses exceed a certain threshold.

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