Catastrophe risk modelling specialist RMS has launched the first probabilistic cyber risk model, a product it believes will help insurance and reinsurance entities allocate capital to cyber risks more robustly and could be a step forward in the tools available for ILS fund managers looking seriously at cyber risk.
RMS said that its RMS Cyber Solutions Platform 3.0 (formerly known as the ‘RMS Cyber Accumulation Management System’) will help insurers, reinsurers and ILS markets to allocate their capital to cyber risk in a rigorous and quantitative way for the first time.
RMS said the launch is the industry’s first probabilistic model for cyber loss, providing losses at different return periods for all five of the major cyber loss processes, which are Data Exfiltration, Contagious Malware, Financial Theft, Cloud Outages and Denial of Service Attacks.
The cyber risk model will enable insurers and reinsurers to allocate risk capital and to design products and risk solutions that reflect the full nature of cyber risk, RMS said. It will also be an important tool for any ILS funds looking to expand into cyber risk exposures, an area seen as ripe for ILS market growth in…
