Allianz Global Corporate & Specialty SE (“AGCS”) has teamed up with Silicon Valley-based cyber risk analytics and modeling firm Cyence to boost its global cyber risk analysis capabilities.
In a statement, AGCS said that, by combining Cyence's cyber analytics platform with AGCS' underwriting processes, AGCS will be able to analyze cyber exposures at company level for large businesses, creating a detailed understanding of their cyber risks and quickly allowing it to tailor coverage to fit specific customer profiles.
In a second initiative, AGCS said that it plans to integrate Cyence's cyber risk analytics into new digital distribution platforms that enable low-touch, automated underwriting of cyber policies for medium-size companies. Both companies also are joining forces to develop a new predictive modelling tool for cyber-driven business interruption risks.
“We are moving our underwriting approach from hindsight to foresight,” explained AGCS's board member, Hartmut Mai, as the rationale behind the cooperation with Cyence. “The future of underwriting and practical risk management will be based on the intelligent use of technology and data. AGCS has always been known for its industry-specific expertise, but going forward we must complement our technical know-how and experience with extensive data-driven insight and predictive modelling if we want to keep ahead of new risks such as cyber, supply chain, or emerging liability exposures. After an extensive evaluation of various partners, AGCS is excited to partner with Cyence for their market leading capabilities.”
AGCS previously announced a similar partnership with liability modeling specialist Praedicat. According to AGCS, although Praedicat focuses on analyzing big data to identify risk trends in liability, Cyence, based in San Mateo, California, is regarded as the leading cyber risk modeling firm.
Arvind Parthasarathi, the chief executive officer of Cyence, said, “We are excited to be partnering with Allianz to understand and model cyber risk and grow this important coverage line. The progression of global cyber regulation and evolution of the risks businesses face make it more important than ever for companies of all sizes, industries, and geographies to review their cyber security and resilience safeguards, and consider cyber insurance as part of a robust risk management strategy.”
AGCS said that it is integrating its underwriting expertise with Cyence's modelling know-how and technologies and creating an automated underwriting process for a new digital self-service platform for preferred distribution partners in selected countries. “We enhance our own cyber underwriting expertise with Cyence's models to allow for automated risks assessment, quotation, and delivery of cyber policies for medium-size companies,” explained Bernard Poncin, global head of financial lines at AGCS.