Risk managers, insurers start from scratch in assessing emerging exposures. Risk managers are exploring quantification techniques to better understand their cyber risk exposures and how much cyber insurance to buy, as well as other risk mitigation techniques. However, experts say quantifying cyber risk is in the very early stages and lags the quantification used in more traditional lines of business.
“We’re just starting to scratch the surface in terms of quantifying cyber risk,” said Brent Rieth, San Francisco-based senior vice president at Aon P.L.C.’s financial services group. “We’ve made a tremendous amount of progress as an industry in developing stronger risk models for cyber, but as data continues to aggregate” this process will improve only over time. Read more.