Lloyd’s has collaborated with modelling firms AIR Worldwide and RMS with the Cambridge Centre of Risk Studies to announce a set of common core data requirements for cyber risks, the insurance institution has announced.
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.”
Bolt continued, saying that due to the growing importance of this risk class, quality standardised exposure data was critical for increased levels of insurance coverage and better risk modelling.
“Models for natural catastrophe risks are well developed in the (re)insurance industry and the data requirements are relatively standardised.
“But in comparison, models for cyber risks are still developing and need the industry to work collectively so that risk can accurately be calculated.
“Lloyd’s is pleased to have worked with AIR, RMS and the Cambridge Centre for Risk Studies to progress this issue.”
The common core data requirements can be found here