Perils launches US cyber index

Industry cat data specialist Perils has launched a new index for US cyber risks in partnership with CyberAcuView.

The index will be based on loss data collated by CyberAcuView from primary US cyber carriers for events where the industry-wide loss exceeds $500mn.

Loss data will be available to be licensed for transactional use within industry-loss-based risk transfer products such as, catastrophe bonds, other insurance-linked securities (ILS) and industry loss warranty contracts (ILW).

In addition, the firms behind this launch believe that the cyber loss database will support further development of cyber risk models over time.

Data collection and aggregation is all carried out by CyberAcuView, while subsequent industry-level calculations are jointly signed-off by CyberAcuView and PERILS.

Luzi Hitz, CEO at Perils, said that cat bond market participants had been asking for a cyber index product over the past year.

Mark Camillo, CEO at CyberAcuView, said the firm’s current dataset represented a strong base from which to extrapolate an industry loss, and the firm aimed to expand the number of insurers providing data over time.

He added that since CyberAcuView began collecting data in 2019, no single cyber event has exceeded a $500mn industry loss- though this would have been possible with the NotPetya ransomware attack of 2017, a seminal market for the property market in terms of flagging the issue of (largely unintended) cyber cover.

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