OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode Ashwin Kashyap, co-founder and vice president, and Joshua Pyle, actuarial director, both of CyberCube, said incidents of electronic intrusion sometimes appear to follow patterns, such as waves of breaches, ransomware and infrastructure attacks. Click on http://www.ambest.com/v.asp?v=kashyappyle418 to view the entire program.
As cyber threats increase, there remains a relative dearth of cyber risk models for insurers and reinsurers to use.
“Although there are quite a few cyber models in the marketplace today, the sophistication and maturity of those models are rather low,” said Kashyap. “However, that will be improving over time, just like it did with earthquake and hurricane models.”
Pyle highlighted the emerging risks associated with cyber insurance.
“Risks, I believe, come in waves, like the one that just recently occurred with breaches. Currently, it is a wave of ransomware. Looking forward, I think there is the potential of infrastructural attacks,” said Pyle.
Looking forward, Pyle sees the future of risk modeling when it comes to cyber as, “a peril that is always changing. Therefore, the industry needs to develop a framework that is very flexible and granular.”
Ashwin said he perceives the future of cyber risk as, “being fundamentally different from the way the industry handles property/casualty insurance. Cyber is not a line of business within insurance, but it is a peril, just like earthquakes and hurricanes.”
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