The company also entered into a formal license agreement with CyberCube to leverage its new stochastic cyber catastrophe model and related intellectual property to deliver innovative cyber reinsurance solutions to its clients and prospects.
Backed by investment from Trident Capital Cybersecurity and utilizing technology developed by Symantec Corporation - the world's leading cybersecurity company - the new risk modeling platform leverages exabytes of unique data and applies multidisciplinary analytic methods to help insurers make more informed decisions when underwriting cyber risk and managing cyber risk aggregation. The Symantec-contributed technology assets were developed in collaboration with Guy Carpenter and a select group of (re)insurers and provides a proprietary data feed to augment the new risk model.
"Guy Carpenter is excited to offer our clients and prospects this exciting new tool to help manage and assess cyber risk," said Guy Carpenter's Global Chief Innovation and Product Development Officer Claude Yoder. "The powerful combination of our knowledge of (re)insurance dynamics and the evolution of the product and macro-systemic industry concerns, coupled with CyberCube's expertise in data science, cyber security, software engineering and actuarial modeling, will deepen the industry's understanding of this rapidly evolving risk."
Guy Carpenter's Cyber Solutions Specialty Practice focused the scope of required inputs for the data schema in the new model and aligned the prioritization of capabilities with the needs of insurance clients. Guy Carpenter also encouraged transparency in the platform's development, particularly with respect to frequency and severity components, to support broad market adoption of the model and provided stress tests of the user interface and model output.
"Cyber is one of the most important risks facing society in the 21st century and therefore it is one of the most important risks facing the insurance industry," said Pascal Millaire, CEO of CyberCube. "Our strategic alliance with Guy Carpenter over the past two years, coupled with continued interactions with their cyber practice, has deepened our understanding of the specific needs of the insurance/reinsurance cyber market, uniquely positioning CyberCube to help insurers underwrite cyber risk and model cyber aggregation in a way that no one else can."