Growth of cyber offerings a hot topic
The development of cyber offerings is a key
focus for Willis Re’s clients, according to
Dirk Spenner, managing director of Willis Re
He explained that different companies are
approaching cyber at varying speeds depending
on what the original client base is.
“If you have an original client base that
is significantly industrial and commercialoriented,
your cyber offering will have
developed much earlier,” Spenner said.
“Many look at cyber as a significant agent
for growth; there have been a number of
predictions made by industry leaders about the
growth potential of cyber income and it’s likely
to be the fastest-growing line of business in the
next few years.
“While it is still in the infant stages of
modelling, it’s something you want to have in
the armoury of your reinsurance offering—it’s
a marketplace that is developing and growing.
Clients want to benefit from it and
offer their existing client base this as
a complimentary product.”
He added that it is an offering
clients approach with great interest,
but also a healthy amount of caution.
“It’s the ultimate accumulating
risk and that’s where the caution
stems from. There’s only a relatively
short history you can look at for risk
assessment and tariffing.”
Spenner said that Willis’ cyber risk portfolio
modelling tool PRISM-Re is performing well for
its clients. The industry’s first cyber risk modelling
tool, PRISM-RE was released in February 2015
and undergoes ongoing development.
It helps clients quantify and manage their
portfolio exposure to data breaches, the leading
cause of cyber losses. Based upon the latest
exposure data, the tool estimates the frequency
of data breaches and the potential severity of
insured losses arising from those
“It is something we wish to
develop further. It’s a very interesting
field to be in and we pride ourselves
on having a very significant offering
in that field. We invest a lot of effort
and manpower to develop for our
clients a cyber offering they will find
second to none and I think it will
be a very significant area of our industry going
forward,” Spenner said.
Asked for his view on the effects of this
year’s nat cat events on international pricing,
Spenner said it is still too early to say.
“When it comes to the impact on an
international scale—we shall see. Reinsurers are
delayed in their decision-making at the moment
so they are using Baden-Baden to find out how
the market is set in order to firm up some of their
opinions or take another view,” he concluded. n