Aon creates US$350m capacity for silent cyber exposures
Written by Deborah Ritchie
Aon is launching a new silent cyber reinsurance solution to protect insurance carriers' portfolios from exposure to these non-affirmative perils across multiple lines of business.
The solution is designed to help insurers identify their silent cyber exposures through wording and threat analysis; and to quantify their exposures using bespoke scenarios. Modelling is provided by Guidewire's Cyence Risk Analytics.
Working with reinsurers in Bermuda, London and Europe, Aon has sourced US$350m of capacity prior to launch. This latest innovation follows last week’s announcement that Luke Foord-Kelcey has been appointed global head of cyber innovation for its Reinsurance Solutions business.
“Our process-led and forward-looking approach to assessing, quantifying and transferring silent cyber will lead to improved coverage, pricing and capacity through robust, modelled results and strong reinsurer partnerships," Foord-Kelcey said. "But most importantly, it is about how we end the ‘silence’, strengthen the cyber re/insurance market and make it future-proof with more transparency, opportunities for growth and enhanced protection across the value chain.”
Over the last 18 months, a combination of regulatory attention and high profile attacks – including reports by the Prudential Regulation Authority (PRA) and European Insurance and Occupational Pensions Authority (EIOPA), and the far-reaching ransomware attacks NotPetya and Wannacry – have raised awareness of how cyber incidents can impact multiple lines of business. Carriers are now under increased pressure to identify, analyse and mitigate their exposures