Lloyd’s, AIR, RMS work on cyber risk data definitions

Lloyd’s of London has announced that a set of common core data requirements for cyber risks has been agreed through ground breaking collaboration with modelling firms AIR Worldwide (AIR) and RMS with the Cambridge Centre of Risk Studies.

Both AIR and the RMS/Cambridge team have agreed to highlight common elements when they publish their data schemas later this month and most importantly each has agreed to use similar terminology and precise definitions.

Tom Bolt, Lloyd’s director of Performance Management, said: “The cyber insurance industry is showing real innovation and demonstrates the ability of insurers to develop policies to cover modern, complex risks. 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.

“Models for natural catastrophe risks are well developed in the (re)insurance industry and the data requirements are relatively standardised. But in comparison, models for cyber risks are still developing and need the industry to work collectively so that risk can accurately be calculated. Lloyd’s is pleased to have worked with AIR, RMS and the Cambridge Centre for Risk Studies to progress this issue.”