Data requirements agreed for cyber insurance

A set of common core data requirements for cyber risks has been agreed through a collaboration between Lloyd’s of London, AIR Worldwide and RMS with the Cambridge Centre for Risk Studies.

AIR and the RMS/Cambridge team have agreed to highlight common elements when they publish their data schemas later this month.

They have also agreed to use similar terminology and precise definitions.

“Cyber insurance is an important new area of coverage and it is essential that we have good quality standardised data to track exposures,” said Tom Bolt, Lloyd’s director of performance management.

“I am delighted that the RMS/Cambridge team and AIR, in consultation with the Lloyd’s Market Association, have worked with us to propose standard definitions for some common data.”

He added: “The cyber insurance industry is showing real innovation and demonstrates the ability of insurers to develop policies to cover modern, complex risks. Due to the growing importance of this risk class, quality standardised exposure data is critical for increased levels of insurance coverage and better risk modelling.”

Backing the collaboration, Airmic technical director Julia Graham said: “Airmic supports initiatives that contribute towards the understanding of cyber risk.

“Similar language and precise definitions are cornerstones in the design, communication and implementation of any successful approach to managing risk.”

This view was further endorsed by Airmic chairman Patrick Smith who said: “The challenge with any emerging risk is to determine common language and drive mutual interpretation.

“In the case of cyber, the drive for an accepted taxonomy is likely to better enable organisations to manage and articulate the risks and the insurance industry to develop effective solutions to respond to threats and incidents.”

Mick O’Donnell, group insurance manager at Interserve, said: “Combined with targeted inquiry this can only enhance the level of understanding between insurer and insured and lead to a more consistent underwriting approach. An altogether good thing for buyer confidence and growing this important market.”

The common core data requirements can be found at www.lloyds.com/cybercoredata