Capsicum Re second white paper addresses ‘silent’ cyber
Capsicum Re, the specialist reinsurance broker, is today launching its second cyber report, ‘Are we heading towards Property, Casualty & Cyber (PC&C)?’. This report considers the way the cyber market is likely to evolve, and a natural path it may follow to join property and casualty as a cornerstone class of the global (re)insurance landscape.
In an increasingly digital age, the cyber market has experienced exponential growth through the sale of ‘affirmative’ cyber cover, where cyber is evaluated, priced, and underwritten as a discrete risk. However, it is the severity of ‘non-affirmative’ or ‘silent’ cyber risks that are becoming the primary concern. Losses are frequently materialising across P&C sectors, as the bulk of cyber exposures are proving to be within non-cyber covers, although it is unclear whether cyber-related damage is covered under traditional insurance or reinsurance P&C cover. This uncertainty is further exacerbated by the fact that normal aggregation methodologies do not apply when cyber catastrophic losses can transcend class, geography and industry.
Ian Newman, global head of cyber at Capsicum Re, said: “We have reached a point where cyber is a very real, tangible risk class. It is understood quite widely that the threats are increasing in severity almost daily, yet the industry is still dealing with developments reactively and behind the pace of change of the risk. At Capsicum Re, we envision a future where cyber is as significant a peril as property and casualty.
“In response, we have created this report, in collaboration with the most experienced names in cyber risk, to highlight the challenges and opportunities that lie ahead, and the solutions that exist on our journey to a marketplace supported by the three key of pillars PC&C. But we must begin innovating today to ensure we, and our clients, are equipped to deal with that reality.”
For a copy of the report please click here. To see a copy of Capsicum Re’s first cyber report, ‘Addressing non-affirmative cyber,’ please click here.
ENDS
For further information please contact:
Capsicum Re
Rupert Swallow
+44 (0)207 234 4075
Haggie Partners
David Haggie/ Chanice Smith
+44 (0)207 562 4444
Notes to editors
Founded by Grahame Chilton and Rupert Swallow in 2013, Capsicum Reinsurance Brokers LLP Group (“Capsicum Re”) is a reinsurance broker working in partnership with Arthur J. Gallagher as its primary treaty reinsurance broking outlet. Based out of offices in London Miami, Rio de Janeiro, Santiago and Bermuda, Capsicum Re is focused on attracting the best advocates in the market to provide bespoke and specialist reinsurance advice and products; it boasts the foremost broking teams in the specialist areas of the market that it focusses on.