ARC (Analytics of Risk from Cyber)

In the context of a soft property market and a low interest rate environment, (re)insurers are building their growth strategy around a strong cyber line of business. To support the industry’s growth, AIR has developed ARC, a cyber risk modeling and analytics platform that informs risk selection, pricing, portfolio management and risk transfer.

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ARC’s Unique Capabilities


Comprehensive Risk Modeling

Risk models quantify the financial impact of for several types of cyber incidents like security breaches, service provider downtime, or electric grid blackouts.

Cyber Risk Data Augmentation

Underlying ARC is an exposure database developed in partnership with leading cyber data providers. Leverage matching algorithms to access detailed cyber supply chain data and augment your own.

Flexibility and Transparency

ARC’s modeling framework empowers users to explore unique views of risk and examine the underlying data and assumptions that drive modeled output.

Manage your cyber risk program from start to finish. With ARC, you can:

Monitor accumulations of cyber risk

To inform underwriting strategy and capital allocation decisions, you must have a good understanding of the accumulations of correlated risk existing in your portfolio. Monitoring these accumulations regularly and assessing them against your company’s appetite for risk is critical as more cyber risk is written.

Estimate insured losses using cyber scenario models for coverages that include data breach and business interruption.

Understand the drivers of cyber risk

Even though cyber is an emerging line of business, the expectations for the quality of analysis and reporting can be the same as for more mature lines. Understanding the drivers of risk is critical to justifying recommendations and creating confidence in the results.

Examine your total exposed limits distribution and each insured’s contribution to modeled losses.

Optimize underwriting strategy

You can profitably grow your book of business while not exceeding risk appetites. Having defined underwriting and portfolio management guidelines, explore and test new strategies before rolling new products out to the market.

Determine the impact of coverage changes and of new or expiring policies on the portfolio.

Evaluate any policy exposed to cyber risk

Silent cyber coverage reveals itself when the impacts of cyber incidents aren’t explicitly included or excluded in the policy wording. Due the potential for losses outside affirmative cyber lines, it’s important to understand your exposure to this potential threat.

Evaluate the cyber risk from commercial policies in any line of business, including property, general liability, E&O and D&O

Keep up with rapidly evolving risk

The cyber risk landscape can evolve faster than your own data or system’s ability to adapt. As new threat vectors emerge or the magnitude of cyber incidents change, there is a need to explore the potential impact on your book of business.

Test your own view of risk by adjusting the model’s severity and vulnerability assumptions.

Augment your exposure data

Competition can create an environment where the collection the ideal amount of exposure data is discouraged. The type of data that relates to an organization’s firmographics and technology profile is both the most challenging to obtain and the kind needed for modeling.

Leverage ARC’s comprehensive database of cyber industry exposures to augment your own data with that required for modeling.


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