1. cyber insurance Tom Wilson Chief Risk Officer, Allianz SE
11th Financial Risk Forum
Paris, March 26-27

2. Cyber Insurance Source Affirmative cyber stand-alone cover
Affirmative cyber endorsement
Non-affirmative cyber exposure – gaps in explicit cyber exclusions
Non-affirmative cyber exposure – policies without cyber exclusions
Covered losses
Notification expenses
Credit monitoring
Legal costs
Forensics
Public relations
Business interruption
Regulatory fines
Affirmative Growth
Expected growth 20% p.a. until and thereafter more than 30% p.a.
Source
Specific policies for losses resulting from Cyber incidents, either accidental or malicious
Extension of the traditional insurance to cover cyber-induced losses
A range of traditional policies that have an exclusion for malicious cyber attack but not total
Policies without explicit exclusions for losses that might occur via cyber attacks
8-Dec-18

3. Risk ManagemenT: Challenges and solutions
Lack of reliable loss experience
Dynamic threat vectors
Challenging risk engineering and underwriting
Challenging risk aggregation and scenario modeling
Limited reinsurance or capital market capacity for peak exposures
Solutions
Multi-disciplinary talent
Develop underwriting capabilities
Train underwriters
Provide underwriting tools
Ensure risk assessment / engineering
Develop guidelines, wordings
Set risk appetite and limits
Control accumulations
First, sum of risk limits
Next, scenario approaches
End-game, sophisticated cyber models
Scenario 2
Scenario 1
Single policy limit
Scenario Approach
probable maximum loss (PML) for scenarios
Cyber Model
Thousands of PMLs
Sum of policy limits
Blackout
Cyber attack on power grid
Cloud Outage
Disruption of cloud-service provider
Cybercrime
e.g. WannaCry, Meltdown