Willis Re has launched the next generation of the insurance industry’s original cyber risk portfolio modelling tool PRISM-Re.
PRISM-Re was first released in February 2015 and has since become a vital tool for Willis Re’s clients, helping them to manage their cyber portfolios and estimate downside risk arising from privacy breach. The innovative 2016 update to PRISM-Re offers the market its first access to the modelling of cyber losses on a worldwide basis arising out of network outages, in addition to data privacy breach.
The 2016 update includes the following specific enhancements:
- Network outage modelling
- Parameters covering global exposures, not just US exposures
- Expanded and refined industry sector groupings
- More data for common shock component and increased evidence of cyber “contagion”
- All model parameters updated using data through year-end 2015
A challenge faced by writers of cyber insurance, is how to quantify downside risk given the increasing connectivity of technology. Risk management within the insurance industry has been vastly improved by property catastrophe models, and with this new version of the market-leading PRISM-Re model, Willis Re will assist underwriters and reinsurance buyers to more effectively manage their entire cyber portfolio, identify contagion risks, monitor shifts in risk profiles, track their risk adjusted pricing and ultimately evaluate their reinsurance strategies.
Mark Synnott, executive vice-president, Willis Re, said: “We are extremely proud of the unique work we have been doing with clients to help them better understand and manage their cyber exposures since the launch of PRISM-Re. Our commitment to developing leading-edge solutions has already delivered a highly effective and successful tool to meet a specific market need. The 2016 update further enhances our capabilities in the rapidly evolving cyber arena and we look forward to introducing it to our clients over the coming months as we roll it out across our global network via our client advocates .”
Alice Underwood, head of analytics Willis Re North America, said: “We’re excited about this important update to PRISM-Re, made possible through collaboration with our colleagues across Willis Towers Watson. Including network outage modelling is a significant new development for the market as a whole. We believe it will further empower our clients to model and manage risk in this growing segment.”