New data standards could offer more cyber accuracy now

AIR Worldwide last week released a cyber exposure data standard, a first step toward a full cyber model but insurers may not have to wait to begin more accurately underwriting and pricing cyber risk, according to Scott Stransky, principal scientist at AIR.

Stransky recently spoke with Advisen to offer more detail about the standard as well as the preparer’s guide issued in conjunction with it. He explained that while AIR has been at work on developing a cyber risk model, the standard, in conjunction with AIR consulting and a SQL schema, can already provide insight for insurers into their cyber risk portfolio. The standard represents extensive work with over 50 insurance companies, according to Stransky, and is meant to be a tool that insurers can develop over time to meet their needs, as well as create a uniform way among the insurance and reinsurance industry to communicate about cyber risk.

“We want these standards to be something that can be grown into,” Stransky told Advisen. AIR took advice from the insurers it worked with, adding “common-sense suggestions” in terms of the type of data collected when underwriting a risk. The standard recommends several different fields of data that offer cyber relevance. Most are optional, with only industry and annual company revenue for the risk required.

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