Improving efficiency of data transfer is key for the cyber insurance market to reduce costs
The Oasis Loss Modelling Framework (Oasis) has announced the release of the Open Exposure Data (OED) standard for cyber.
Continuing from the release of the OED for liability in April 2022, the focus continues to shift its focus from solely catering for property catastrophe business and its adoption in the market has increased significantly in the last 12 months.
The cyber data standard is designed to assist with solving the significant interoperability problems currently challenging the cat modelling community by implementing open and agnostic data formats to increase efficiency and transparency. Improving efficiency of data transfer is key for the market to reduce costs.
Dickie Whitaker, chief executive, Oasis Loss Modelling Framework, said: “This truly is a collaborative effort, utilising the vast expertise across these companies to ensure that this standard really was developed ‘by the market for the market’ and highlighting the power of collaboration.”
Bringing consistency and accuracy
Simon Heather – head of Cyber Catastrophe Modelling, Gallagher Re, said: “Over the years Gallagher Re has seen a progressive improvement in the accuracy and completeness of modelling data across the cyber market, but there remains significant variation in the quantity and value of the data fields that each company chooses to collect and record.
”The OED will provide a baseline for any company collecting cyber modelling data, bringing consistency to the transfer of information between the insurers and reinsurers. It will also raise the quality and transparency of data across both markets. which in turn can lead to the unlocking of additional capital”
Matt Harrison, director, Product Management, Moody’s RMS, added: “Cyber modelling is still in its formative youth, therefore now is the perfect time to embed an open standard throughout the value chain and ensure that we reduce frictional costs.
“Furthermore, as a modeller, if data standards are unified, everyone has more clarity on what data fields can be captured, what is useful and what brings utility to the insights we deliver.”