AIR Worldwide helps insurers assess cyber risk

Catastrophe risk modelling specialist AIR Worldwide has released the first open source deterministic cyber risk scenario for the insurance/reinsurance industry, while expanding its cyber risk consulting practice. AIR, whose parent company is Verisk Analytics, plans to release a series of deterministic cyber scenarios over the next 12 months and to assist clients augment the cyber exposure information in their existing books of business and to produce custom reports on aggregation risk and the probability of breach, helping companies understand their current cyber risk.

The AIR cyber scenarios, used in conjunction with AIR’s data schema, will provide practical examples to help perform deterministic scenario modelling of an insurer’s or reinsurer’s book of business. AIR’s 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. A scenario such as this has the potential for revealing significant aggregation risk within an insurer’s book. Consulting clients will gain early access to future scenarios.