In this A.M.BestTV episode from the Meeting of Reinsurance Officials (MORO) conference in Montreal in April, a panel of cyber-risk experts discussed where insurers are in using data to create and price cyber products, and say that clients care about much more than financial indemnity. Click here to view the entire programme.
James Latham, Divisional Director at ICMIF Supporting Member organisation Willis Re, discussed the uniqueness of cyber products.
“There are a number of reasons why cyber is a unique exposure; however, I think the most important is that cyber insurance is much more than just an indemnity product,” said Latham. “The post- and pre-loss services that are offered by most providers are of paramount importance. ….As long as their indemnity product is level with the market, it matters more to them that their services are the best in the market.”
Jessica Fung, Executive Vice President, Willis Re, spoke about how cyber offers organic growth opportunities for insurers.
“The total cyber premium worldwide is about USD 5 billion and projected to grow to about USD 20 billion by 2025,” said Fung. “We are living in a day and age that is increasingly digitally connected because of the Internet of Things, social media and cloud infrastructure. All these are pushing cyber exposure, which means that the demand for cyber insurance is only going to increase.”
Also appearing in this episode is Marcus Breese, Head of Insurance Innovation & Strategy, Corax.
For full video coverage of MORO, including exclusive executive interviews, visit www.ambest.tv/moro18.
This article has been adapted from an original post from A.M. Best, one of ICMIF’s Supporting Members. This is reproduced with the permission of the original author. Our thanks to A.M. Best.
Other recent episodes of A.M.BestTV from the Meeting of Reinsurance Officials include:
Mutual insurers form tight bonds with reinsurers: A panel of insurance and reinsurance executives discusses the increasing role reinsurance is playing in how insurers, particularly mutual insurers, are managing their risks: www.ambest.com/v.asp?v=moro3418.
Growing global protectionism undermines reinsurance: Insurers and industry leaders say nations that restrict cross-border insurance, manipulate interest rates and react to disasters with short-sighted solutions are limiting insurers’ ability to provide a full range of risk solutions: http://www.ambest.com/v.asp?v=moro2418.
Mutuals on reinsurance rates: what can’t be sustained, won’t be, says expert panel: A panel of insurers, reinsurers and brokers say 2017’s catastrophes brought temporary uncertainty to the market, but there’s been little slowdown in reinsurers’ pricing wars: http://www.ambest.com/v.asp?v=moro1418.
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