PERILS, together with CyberAcuView, a cyber insurance organization, has jointly announced the launch of a US cyber industry loss index.
The loss index compiles confirmed US primary cyber market losses stemming from systemic cyber incidents impacting multiple insurers and policyholders. It encompasses all events resulting in industry losses exceeding $500 million. Loss estimates will be made available no later than six months after the event’s conclusion and will be updated quarterly for up to three years following the event’s end date.
This loss data can be licensed for use in industry-loss-based risk transfer products like insurance linked securities (ILS) and industry loss warranty contracts (ILW). Additionally, the loss database will support the ongoing enhancement of cyber risk models.
The cyber industry loss figures rely on data collected from US cyber insurers. Data collection and aggregation are overseen by CyberAcuView, with industry-level calculations jointly approved by CyberAcuView and PERILS. The initial industry loss estimates and subsequent quarterly updates will be accessible to subscribers through the newly introduced PERILS Cyber Portal. Moreover, PERILS will serve as the industry loss reporting agency for ILS and ILW transactions.
“The launch of the Cyber Industry Loss Index in collaboration with CyberAcuView is a key development which we hope will be of significant benefit to the market,” PERILS CEO Luzi Hitz said. “Increasing the availability of cyber loss data is critical to the ongoing development of the cyber insurance market. While the cyber market is expected to grow substantially, the potential for systemic loss events will grow in tandem. Access to loss data will become increasingly important to support sustainable capacity for the US cyber market.”
What are your thoughts on this story? Please feel free to share your comments below.