A.M. BestTV: Executives from Risk Management Solutions Say Cyber Model Focuses on Accumulation First

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this ^A.M.BestTV episode, two executives from Risk Management Solutions (RMS) – Elizabeth Foughty, director, professional services, and Gates Maus, analyst, consulting – discuss the elements that underpin the modeling firm's approach to analyzing cyber risk. Click on http://www.ambest.com/v.asp?v=cybermodel616 to view the entire program.

“RMS has developed a deterministic cyber model that has four key elements, which we've developed to help insurers manage their probable maximum loss and their accumulation risk,” said Foughty. “This includes five models that we've developed around different types of cyber threats like data breach or extortion. Furthermore, the linchpin of the cyber model is our exposure schema, which is an open source exposure schema and the first cyber exposure schema released. We worked closely with Lloyd's to develop the schema…. It really captures the critical drivers of cyber risk.”

“One of the first steps to managing risk is truly collating your exposure data. Specifically, this data schema has been created with cyber-specific data in mind,” added Maus. “We've used a lot of academic and publicly available data to create and parameterize this model. Understanding that data helps you understand your cyber risk.”

Recent episodes of ^A.M.BestTV include:

New Risks Reshape Global Markets: Speakers at a recent conference on country risk said digital perils, terrorism and mixed performances among emerging markets are recasting the risk and investment environments for global business: http://www.ambest.com/v.asp?v=countryrisk616.

Health Insurers Maneuver Transition to Outcome-Based Medicine: Changes in the Medicare reimbursement model as part of health care reform is prompting health insurers to develop new models that target patient outcomes and quality of care. Dr. Manil Patel explains how Horizon Blue Cross developed its own approach, called Omnia: http://www.ambest.com/v.asp?v=outcome516.
Medical Professional Liability Market Remains Profitable But Shifting: A panel of analysts and insurance professionals review the state of the U.S. medical professional liability insurance market, which is experiencing declining premiums and rising combined ratios. Competition is most intense among insurers courting larger medical organizations: http://www.ambest.com/v.asp?v=mplirecut516.
Specialty Insurance Professionals Say Many Routes to Landing Young Talent Exist: At the AAMGA conference members of the Under Forty Organization said a combination of university outreach, better communication regarding professional opportunities, job shadowing and competitions are helping to build a younger workforce: http://www.ambest.com/v.asp?v=aamga2516nc.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.