Lloyd's of London develops common core for cyber risksReprints
Lloyd's of London has developed a set of common core data requirements for cyber risks, it announced Tuesday.
Lloyd's said it had developed the data requirements, which will enable it to track exposures and help underwriters to better develop policies to cover cyber risks, in collaboration with AIR Worldwide, Risk Management Solutions Inc. and the Cambridge Centre for Risk Studies.
AIR and the team of RMS and the Cambridge Centre for Risk Studies have agreed to highlight common elements when they publish data schemas later in January and have agreed to use similar terminology and definitions.
“Cyber insurance is an important new area of coverage, and it is essential that we have good quality standardized data to track exposures. I am delighted that the RMS/Cambridge team and AIR, in conjunction with the Lloyd's Market Association, have worked with us to propose standard definitions for some common data,” Tom Bolt, director of performance management at Lloyd's, said in a statement.
“I have written to major brokers to ask them to endeavor to provide this data to Lloyd's underwriters,” he said.
Mr. Bolt said that good quality, standardized data is needed to help underwriters better model and underwrite cyber risks.
“Models for natural catastrophe risks are well developed in the (re)insurance industry, and the data requirements are relatively standardized,” Mr. Bolt said.
“But in comparison, models for cyber risks are still developing, and need the industry to work collectively so that risk can accurately be calculated,” he said. “Lloyd's is pleased to have worked with AIR, RMS and the Cambridge Centre for Risk Studies to progress this issue.”