The Insurer TV Interviews Leaders from Howden Re’s Cyber Division at the Inaugural Cyber Reinsurance Summit at Ascot Racecourse
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Howden Re experts participated at the inaugural Cyber Reinsurance Summit coinciding with the release of ‘Re-framing cyber risk: navigating threats and embracing opportunities,’ an industry-first report assessing the untapped potential and required recalibration of the cyber reinsurance market. At the Summit, Howden Re experts sat down with The Insurer TV to discuss the driving forces that are shaping the global cyber risk and reinsurance landscape.
Interviews included Mark Lynch, Head of Cyber Data and Analytics; David Flandro, Head of Industry Analysis and Strategic Advisory; and Matthew Webb, Head of Cyber Clients and Strategy.
Mark Lynch commented on the impending seismic shift in the market, predicting that cyber premiums will surge from $15 billion today to $43 billion by 2030. He noted, “this growth is driven by cyber becoming a primary purchase for most companies and increasing penetration in regions such as Europe and APAC.” To achieve this scale, Lynch advised insurers to “get a handle on catastrophe risk and integrate it into their risk tolerance frameworks” and highlighted the key role cat bonds will play in bringing new capital to the market.
David Flandro argued for insurers to increase cyber risk coverage, noting that “the cyber landscape is evolving rapidly, and the frequency and sophistication of attacks are only increasing.” Despite companies making heavy investments in cybersecurity, Flandro pointed out that reinsurers are not matching this investment with commensurate cyber coverage. He also underscored the stark contrast in risk tolerance between nat cat and cyber reinsurance, suggesting that there is “ample scope for more [underwriters] to become confident as cyber risk matures.”
Matthew Webb discussed that, while the cyber market is poised for significant growth, inconsistent data collection techniques currently hinder its full potential: “Data within cyber in general, both from a policy perspective and a claims perspective, needs to be improved, and more granularity of data needs to be collected”. This, he explained, would enable carriers to accurately quantify risks, better protect their reserves, and provide clients with more favourable rates in the long term. Webb also anticipates “a period of stability from a rating standpoint after the recent turbulence over the oscillation in rates over the last 24 to 36 months.”
Watch the full interviews here
Howden Re’s Lynch: Cyber insurance market to skyrocket to ~$43bn by 2030
Howden Re’s Flandro: Insurers must write more cyber risk
Howden Re’s Webb: Cyber market shackled by poor data, but improving