Aon has gathered Bermuda, London and European reinsurers to provide capacity for insurers’ so-called “silent cyber” risk – liability coverage exposed to cyber-attacks
Aon has launched a “silent cyber” solution to meet the challenge of cyber risk on insurers’ books within their liability and other business not designed to meet digital threats.
The broker has readied $350m of reinsurance capacity from Bermuda, London and European reinsurers.
Aon’s new package aims “to mitigate this risk using a combination of reinsurance, data & analytics”.
Challenges include locating the exposure, and developing realistic and relevant scenarios, the global broking firm said.
In response, Aon said its silent cyber solution is designed to partner with carriers “in their journey to identify, quantify and mitigate the silent cyber risk by providing a clash solution to reinsure the exposure in the interim period”.
Clash coverage is reinsurance designed to protect an insurer from the loss of its normal reinsurance recoveries when it is faced with multiple claims from multiple insureds from the same catastrophe, and where its reinsurance does not fully reimburse the insurer for these related losses.
Aon continued: “Where the carrier chooses to provide affirmative cyber coverage going forward, Aon can arrange a reinsurance solution for that cyber exposure to sit across multiple lines of business.”
Luke Foord-Kelcey, Aon’s new global head of cyber innovation for its reinsurance solutions business, commented on the announcement.
“Our process-led and forward-looking approach to assessing, quantifying and transferring silent cyber will lead to improved coverage, pricing and capacity through robust, modelled results and strong reinsurer partnerships,” said Foord-Kelcey.
“But most importantly, it is about how we end the ‘silence’, strengthen the cyber re/insurance market and make it future-proof with more transparency, opportunities for growth and enhanced protection across the value chain,” he added.