AIG, AXIS, Beazley, Chubb, The Hartford, Liberty Mutual Insurance and Travelers have formed a new entity to coordinate the industry’s response to cybercrime.
Leading cyber insurers AIG, AXIS, Beazley, Chubb, The Hartford, Liberty Mutual Insurance and Travelers have formed a company to coordinate their data and expertise to address cybercrime by leading cyber risk mitigation efforts across the insurance industry.
The new entity, called CyberAcuView, will compile and analyze cyber-related data to enhance value and service to policyholders and help insurers sustain a competitive market for cyber insurance. CyberAcuView's activities will be conducted under strict antitrust review and guidance, according to the announcement.
The creation of CyberAcuView comes as cyberattacks and insurance claims are on the rise. Notable examples of recent attack victims include CNA and Colonial Pipeline, but the larger picture has impacted the entire cyber insurance industry.
The loss ratio for cyber insurance rose dramatically in 2020, to 68%, from 45% in 2019, according to a recent report from AM Best that calls for an industry reassessment of its approach to cyber risk. Over the past four years, the average growth in claims has been 39.2% and the average paid loss for a closed standalone cyber claim increased to $358,000 in 2020, up from $145,000 in 2019, according to Fitch Ratings.
CyberAcuView is 100%-owned by the seven founding carriers, six of which are among the top 10 insurers in the market based on 2020 direct written premium, according to AM Best. The new company will invite other direct writers of cyber insurance to be associate members, according to its website.
CyberAcuView is set to address cyber risk mitigation by:
- Providing industry best-practices to improve resilience to cyber risk.
- Proactively engaging with regulators, law enforcement and other security agencies to counter cybercrime and the rapid rise of ransomware.
- Developing systemic risk solutions and advancing cyber policy language to improve market efficiencies.
- Analyzing cyber trends to provide enhanced visibility on cyberattacks and the causes of loss so that insurers can identify critical controls and educate policyholders on loss prevention strategies.
Mark Camillo, most recently head of cyber, AIG Europe, Middle East and Africa (EMEA), has been appointed CEO. Joining Camillo on the leadership team is Monica Lindeen, former Montana Insurance Commissioner, who will serve as director of Regulatory Affairs; and James Schweitzer, a veteran of the FBI and former chief operating officer of the National Insurance Crime Bureau (NICB), who joins as director of Law Enforcement Engagement.
“The cyber landscape continues to evolve with coordinated attacks becoming more frequent and disruptive," Camillo said. “Combining resources from across the insurance industry will allow us to better understand cyber trends, anticipate and potentially mitigate future attacks, and help improve overall cyber resilience."
AnneMarie McPherson is IA news editor.