At CyberCube's Foresight conference in London, Rory Egan, Senior Cyber Actuary at Munich Re, and Andy Lea, Head of Commercial E&O, Cyber & Media Liability at CNA Insurance, discussed the current and future state of analytics across the cyber insurance value chain.
The conversation, moderated by Jamie Pocock, Head of Guy Carpenter Cyber Analytics – International, covered a wide range of topics, including single risk underwriting decisions, model limitations, and industry scenario narratives.
Both panelists felt that analytics are not yet available to test the hypothesis of whether a risk has demonstrably changed its profile post cyber event for underwriting purposes.
As an actuary, it was particularly interesting to hear Rory discuss the current state of cyber risk models. As models mature, communication and transparency are key to stakeholder buy in. "If actuaries are doing their jobs, they should be able to explain the limitations of their models," he said.
Speaking from an underwriter's point of view, Andy gave credit to industry experience thus far. Thoughtful underwriters have been successful over time at risk selection. As the industry continues to refine and adjust scenario narratives, "the gap must be closed between underwriter experience and scenario assumptions".