Scenarios will broaden the understanding of loss potential from cyber breaches
AIR Worldwide has released the insurance industry’s first open source deterministic cyber risk scenario. The catastrophe modeling firm said it aims to release a series of such scenarios over the next 12 months.
Used in conjunction with AIR’s data schema, the scenarios will serve as practical examples to help perform deterministic scenario modeling of a (re)insurer’s book of business.
The first cyber scenario will consist of a major cloud service provider experiencing downtime for several days, resulting in significant business interruption losses for its customers.
“AIR Worldwide is committed to broadening the understanding of loss potential from cyber breaches,” said Scott Stransky, assistant vice president and principal scientist at AIR Worldwide. “These open source deterministic cyber scenarios will supplement the number and variety of cyber scenarios that companies are currently managing, allowing the insurance industry to begin to truly understand their aggregated risk from large-scale cyber attacks that could lead to catastrophic accumulated losses.”