Collaboration between Lloyd’s, AIR Worldwide and RMS backed by industry
A new set of data standards for cyber risk has been launched by Lloyd’s of London, AIR Worldwide and RMS this week, to help the insurance industry better understand cyber risk and model clients’ exposures.
Both AIR and RMS have agreed to use similar terminology and precise definitions when it comes to cyber in a bid to help improve its risk modelling.
Lloyd’s director of performance management Tom Bolt said: “Cyber insurance is an important new area of coverage and it is essential that we have good quality standardised data to track exposures.”
Bolt said he had written to major brokers, urging them to use the new standards when providing data to Lloyd’s underwriters.
“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,” he added.
Backing the collaboration, Association of Insurance and Risk Managers in Industry and Commerce (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.”
AIR Worldwide has also developed a preparer’s guide to assist insurance and reinsurance companies to collect and store the necessary cyber exposure data in an open format suitable for modelling.
The common core data requirements can be found at www.lloyds.com/cybercoredata