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The majority of economic losses from cyber breaches are not covered by currently available insurance products—this creates a challenge for insurers to create new products, says Jim Riley, vice president, specialty underwriter at RenaissanceRe.
What cyber coverage do you offer?
We offer reinsurance solutions for portfolios of cyber risk across a broad spectrum of coverage types. In the past 10 years, we have seen coverage evolve from limited policies meant to respond to cost-related items following a breach to enterprise-level forms that respond to far more areas of concern.
This has broadened the client base as more risk managers are able to find products that tackle the concerns of their own organisation. We believe in empowering our partners to develop products that answer the concerns of their clients and invite them to work with us on efforts to innovate.
What limits do you offer clients?
As in all cases, we look to deploy efficient and potentially meaningful capital to support our clients.
What appetite for growth are you seeing at the moment and has that changed over the past year?
Modern companies rely heavily on technology to manage the logistics of their operations. When that technology is impacted, it can cause bottlenecks in the availability of services that in some cases can be far more devastating to the company’s financial results than traditionally insured causes of loss to physical or financial assets.
In the wake of several high profile events of the past year, we believe demand for enhanced products to address these challenges is evolving as companies awaken to the risks inherent in their operations.
We have also seen an increase in demand for, and availability of, insurance solutions for companies outside the US. Some of this is in response to modernised data protection laws, but we also believe that some of the risk factors regarding the use of technology have little regard for geography.
What support and response do you offer clients?
Each of our clients is unique, and as such we look to be responsive to their individual needs. In some cases, an insurer may be looking to RenaissanceRe for a new style of reinsurance product to respond to a particular constraint they have. In other cases, they may be looking to partner on a new business endeavour and request additional insight from us as a third party. Our focus is on building long-term, equitable and sustainable trading relationships with our partners.
How do you see the opportunity developing—would you consider any partnerships?
The majority of economic loss from cyber breaches is not covered by currently available insurance products. Some of this arises from losses that are intangible, and it is a challenge to create products around this. Some arise in areas of the world where cyber insurance is not widely available. We should look to understand the sources of such loss and find the appropriate components that warrant coverage within insurance and reinsurance policies.
For cyber growth to continue, our industry will have to continue to respond with products that resonate with a larger number of consumers.
RenaissanceRe, cyber risks, challenges, technology, specialty, insurers