“The cyber market now is where the natural catastrophe market was in the early 2000s,” said Darren Wray, chief executive officer interview exclusively by Intelligent Insurer magazine. He explained that previously in the nat cat market, re/insurers knew there would be a certain number of storms over the course of the year but the information was more anecdotal than data-led.
Cyber insurance is currently seen as one of the few growth segments in re/insurance, attracting market players perceiving it as profitable business and looking to gather data to base future underwriting on. But profitability may quickly decline as the risks remain unclear, capacity expands and higher risk organisations buy cyber insurance as a way of reducing their risk exposure, warns Darren Wray, CEO of Fifth Step, in an exclusive article with Intelligent Insurer.
The re/insurance industry’s current understanding of cyber is not good enough, meaning large and potentially interconnected cyber events can’t be predicted accurately. “The cyber market now is where the natural catastrophe market was in the early 2000s,” said Darren Wray, chief executive officer of boutique consultancy firm Fifth Step.
