How do I manage my reinsurance portfolios against established risk tolerances?

Building a robust forward-looking view of risk to manage cyber risk portfolio accumulations and set risk tolerance thresholds is a complex and resource-intensive task in any insurance organization. This is only exacerbated for reinsurers. Managing catastrophe accumulations and reinsurance portfolio risk tolerance thresholds are complicated by uncertainty about cyber accumulations and identifying significant loss drivers in the tail of modeled loss distributions. As these decisions are made and tolerances managed against, they also need to be communicated to other senior-level stakeholders. How can reinsurance portfolio managers create informative and distinctive management reports?

CyberCube’s Portfolio Manager is a scenario-based data-driven model that enables enterprise risk managers in reinsurance organizations to analyze and communicate key messages on cyber exposures to both their senior leadership and their working teams. Probabilistic analyses can be run in a matter of seconds allowing for quick access to results and the ability to efficiently rerun using different assumptions and parameters.

Quickly access visualizations on exceedance probability metrics to include in management information materials. Dive into more granular details by scenario, risk class, and account level statistics. Educate stakeholders on the exposures, loss drivers and overall portfolio tail risk.

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How does Portfolio Manager help?

Comprehensive and realistic systemic cyber risk scenario catalog developed by experts in cybersecurity, threat intelligence, data science, and economics
Easy to use data schema requiring minimal inputs, but accepting policy-level detail to increase the specificity of results
Flexible assumptions reflect company-specific views of risk and stress testing
Cloud-based technology allows for instant access to full risk reports and increased efficiencies for technical resources

How do I make better financial decisions on pricing and program structure?

There is a significant disparity in cyber insurance wordings, pricing, and coverage, making it difficult to identify a market consensus among carriers. This increases the work that needs to be done by reinsurance companies when considering their pricing and program structures. How can program managers confidently make pricing and structural decisions based on risk exposure and company risk tolerances?

CybeCube’s Portfolio Manager is a scenario-based model offering risk managers flexibility in analyzing the relationships between coverage types and cost components. Users can select market defaults to initially identify accumulation and exposure risks within and across insurance portfolios. The CyberCube interface allows users to adjust the relationship between coverage types and cost components to better reflect the risks that are covered against modeled scenarios. Users can run probabilistic scenarios that highlight specific cost components to allow for sensitivity testing of potential product changes.

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How does Portfolio Manager help?

Scenario-based data-driven model from the top-down portfolio view
Direct support from technical experts to help users implement their views of risk within the tool interface as well as interpreting the output
Flexibility in mapping between coverage types and cost components
Exceedance probability metrics at various return periods

How do I stress test portfolio accumulations and model realistic scenarios at various return periods?

Cyber risk is a dynamic, man-made peril that is evolving rapidly. The motivations of cyber attackers, their methods and the technical vulnerabilities they exploit are constantly in flux. Developing a robust, forward-looking view of risk in your portfolio is a complex and resource-intensive task. The forward-looking nature of cyber risk creates increased uncertainty for risk modelers and portfolio managers trying to identify portfolio exposure accumulations and develop realistic cyber catastrophe scenarios.

Risk modelers need the flexibility to vary frequency, severity and other assumptions to dynamically stress test model outputs. Portfolio managers need to efficiently stress test their assumptions, often without creating bespoke models from scratch. Also, as carriers identify affirmative cyber cover in multiple lines of business, models need to assess cyber exposure across other P&C lines of business and isolate loss cost components to reflect specific policy coverage.

CyberCube’s Portfolio Manager enables stress-testing by varying frequency distributions, frequency mode, and severity modes. Scenario specific analytics also include conditional loss distributions allowing users to see the max range as well as interquartile results per scenario. Portfolio Manager allows you to drill down and identify loss drivers and areas of accumulation risk across multiple lines of business.

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How does Portfolio Manager help?

Comprehensive and realistic scenario catalog developed by experts in cybersecurity, threat intelligence, data science, and economics
Probabilistic and scenario models built by experts in insurance, actuarial science and cyber risk modeling allow customizable frequency and severity views
Terabytes of external and internal security data, enterprise data and historical losses with multi-disciplinary analytics
Cloud-based technology allows for nearly instant access to full risk reports