PCS Global Cyber

For our latest Artemis Live video interview, we were joined by Tom Johansmeyer, Head of PCS to discuss the subject of cyber risk and ask the question, why isn’t it a bigger exposure in the insurance-linked securities (ILS) market?

PCS, the provider of industry loss estimates and loss data globally, has launched its first non-loss reporting platform, Cyber RLM, which will provide users with unique insights into large insured cyber risks around the globe.

As re/insurers struggle to find ways to manage their non-affirmative cyber exposures, there’s an opportunity for the insurance-linked securities (ILS) community to support an ILW-based retro market to address the issue, says Tom Johansmeyer, Head of PCS.

Specialist insurance, reinsurance and ILS capital manager Hiscox has provided the capital to back a novel parametric cyber risk transfer arrangement that is based on a trigger from PCS and was transacted on the technology platform created by AkinovA.

Hiscox is targeting the launch of a new ILS fund focused on cyber risks, as it looks to put its expertise in underwriting cyber insurance and reinsurance together with its Hiscox Re Insurance Linked Strategies ILS management expertise to create what would be a new and unique insurance-linked investment opportunity.

The recent Capital One cyber hack attack and resulting significant data breach could lead to a significant cyber insurance and possibly reinsurance market loss, leading Property Claim Services (PCS) to designate the event.

Norsk Hydro has said today that its costs from the cyber attack by malware or ransomware are estimated at up to US $41 million just from the first week since the event occurred.

Norsk Hydro, one of the world’s largest aluminium manufacturing firms, was hit by a cyber attack recently, as malware or ransomware caused the company to shutter and reduce operations at a number of locations.

The enhancement of the PCS Global Cyber Index to include cyber catastrophe is in response to client demand, and is another positive step in helping the international risk transfer industry both understand and address the growing cyber threat.

Property Claim Services (PCS) has expanded its industry loss index and estimates service for the cyber insurance and reinsurance space by adding cyber catastrophe events, covering losses that involve multiple insureds across affirmative and silent cyber with industry-wide insured losses of at least $250 million.