Senior executives are “certain” that cyber will become a prominent line of business for Swiss Re in the long term, even as the reinsurer opts to stay underweight in this class for the present moment, until more data becomes available.
Сyber remains both a “challenge and an opportunity” for Swiss Re as it tries to get a handle on this increasingly important line.
Swiss Re anticipates that cyber insurance premiums could be on a level footing with property by 2040, representing a compelling new pool of risk for the industry.
But while the reinsurance market has a wealth of data and experience to draw on when it comes to underwriting property cyber is very different.
There will be a difficult learning period for the industry as it slowly adjusts its modelling and prices based on the large cyber losses that will inevitably occur.
During this time, Swiss Re will also be collecting data and trying to support clients with cyber capacity, he added, but until the risk is better understood the company plans to remain wary.
The re/insurance industry may have to look at partnering with governments around the world to ensure that coverage can be provided for society more broadly.
We are cautious because we still feel there is a need for a combination of coverage forms, as well as the models to develop even further, before we say that we’ll run full on into writing loads of this business
Moses Ojeisekhoba, CEO Reinsurance at Swiss Re
There’s no getting away from the fact that this is a risk that almost every individual and every enterprise around the world will face.
But due to the lack of data and the level of uncertainty still attached to this risk, the leaders were nevertheless unable to provide a timeframe of when Swiss Re might decide to grow its cyber business.
