Silent cyber to cause ILS fund losses
Saturday, 10 27 2018, Category: Technology, Country: World
A cyber attack scenario where hackers targeted a U.S. hydroelectric dam causing significant property damage through flooding, could clearly result in losses flowing through to the insurance-linked securities (ILS) market thanks to so-called silent cyber exposure.
Insurance and reinsurance broking specialist Aon worked with Guidewire Software’s Cyence Risk Analytics team to develop a scenario that clearly shows how silent cyber exposures can impact property portfolios of insurance and reinsurance.
As a result, the scenario also clearly demonstrates how such an event could cause significant losses to ILS funds that are backing reinsurance programs exposed to the losses caused by silent cyber events.