On Tuesday, Guy Carpenter announced that it will be partnering with cybersecurity company Symantec Corp to create a cyber aggregation model. The model, which will be marketed to insurers and reinsurers, “will include a comprehensive catalogue of cyber scenarios from which insurers can derive frequency and severity distributions to measure the potential financial impact of loss from both affirmative cyber coverages and “silent” all-risk policies where cyber is the peril, but no cyber exclusions exist,” according to Business Insurance. In a news release announcing the strategic alliance, Guy Carpenter explained that cyber-attacks cost businesses an estimated $400 billion a year. With attacks being so widespread, insurers and reinsurers risk suffering losses from multiple policyholders at once, which would likely cripple an organization. “By combining Guy Carpenter’s risk management and catastrophe modeling expertise with Symantec’s technical knowledge and proprietary data, we are pioneering a cyber aggregation model to help reinsurers gain a better understanding of their correlated cyber risks and to manage and protect their capital in extreme cyber scenarios,” said Tim Gardner, CEO of U.S. Operations at Guy Carpenter.
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