For Immediate Release:
AIR Develops Advanced Probabilistic Model for Global Cyber Risks
BOSTON, Oct. 22, 2018 – Catastrophe risk modeling firm AIR Worldwide today announced it has developed a probabilistic model for cyber risk capable of accounting for security breach and cloud service provider downtime incidents for insurance portfolios worldwide. The new model will be included in the latest release of ARC (Analytics of Risk from Cyber), AIR’s cyber risk modeling and analytics platform, due for general release on October 31, 2018. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.
“Many insurers are challenged to understand how often various types of cyber incidents can occur and how they can affect the performance of their book,” said Prashant Pai, vice president of cyber offerings at Verisk. “As a result, decisions on product development, underwriting, portfolio optimization, and capital allocation tend to be made with limited data; and too much weight is often put on intuition or broad assumptions. This is where probabilistic modeling can help the industry…
