Both AIR and the RMS/Cambridge team have agreed to highlight common elements when they publish their data schemas later this month, with each agreeing to use similar terminology and precise definitions, Lloyd’s said.
Now it is turning to key brokers to do their bit.
Lloyd’s director of performance management, Tom Bolt, said: “Cyber insurance is an important new area of coverage and it is essential that we have good quality standardised data to track exposures.
“I am delighted that the RMS/Cambridge team and AIR, in consultation with the Lloyd’s Market Association, have worked with us to propose standard definitions for some common data.
“I have written to major brokers to ask them to endeavour to provide this data to Lloyd’s underwriters.”
Lloyd’s general representative in Australia, Chris Mackinnon, told Insurance Business that the new framework should help the Australian industry to better evaluate cyber risk.
“The framework introduces common core schema for cyber exposure data and common core features for input data used in cyber risk tools in the market,” Mackinnon said.
“This will enable Australian brokers and insurers to better evaluate cyber risks, with increased access to good quality standardised data to track exposures.”
Mackinnon noted that the new framework is aimed to help standardise an ever-changing and evolving risk as the business looks to keep up with an emerging risk with huge potential opportunities and challenges.
“This new framework will provide better clarity for the calculation of risks and this is a significant step forward,” Mackinnon said.
“At Lloyd’s we have been modelling catastrophes for hundreds of years, and our data enables us to create very effective modelling forecasts.
“But cyber security risks are a relatively new class of business and the entire insurance industry needs to ensure that it improves data aggregation to build more reliable models that enable underwriters to properly price risk.
“Lloyd’s underwriters are some of the most experienced in the world, and we are pleased that we have been able to use our experience to help build a consensus on the standardisation of data that will benefit the whole sector.”
The common core data requirements can be found here.
You've reached your limit - Register for free now for unlimited access
To read the full story, and get unlimited access to Insurance Business website content, just register for free now. GET STARTED HERE
Already a website member? Log in below.