Scor Se · EURONEXT:SCR
Scor — Technical Presentation (September 2016)
8 slides from Scor's technical presentation, Sep 29, 2016
Slide 1: Tom Allen, Head of Technology and Cyber Insurance
Tom Allen Head of Technology and Cyber Insurance 29 September 2016
Slide 2: Cyber Heads of Cover – Non-physical damage
Cyber Heads of Cover – Non-physical damage Liability Data protection: obligations which may arise under statute, contract or civil/common law. Typically, the theft or accidental release of commercially valuable data which harms a third party, and/or private/personal details Media liability: de
Slide 3: Global Market
Global Market Commentary suggests global premium volume for Cyber Insurance ~USD3bn; I think a more realistic figure is +/- USD 1bn Global leaders are AIG and Beazley; significant market share held by XL, Chubb, Zurich Market penetration strongest by far in US, where mandatory notification law
Slide 4: Market Losses by Type
Market Losses by Type Data Protection: Theft of financial data for resale on black market: Target, Home Depot = losses in excess of insurance programmes Uninsured financial sector losses Numerous losses within programme limits – some of which have resulted in publicised coverage disputes
Slide 5: Elements of Loss
Elements of Loss Investigation* Proof of Loss** Basis of Liability Response Disaster Recovery Crisis Management Legal Assessment Clean-up Reconstitution Mitigation Liability* Indemnity** *Indicates the most volatile elements in losses seen so far **Indicates the most disputed
Slide 6: Loss Adjustment Challenges
Loss Adjustment Challenges What factual event(s) trigger coverage? Most policies are on a claims-made basis; some offer a mix of claims-made or occurrence depending on the heads of cover Example of a loss discovered on the eve of policy renewal: Is the claim made when a breach takes place? Whe
Slide 7: Underwriting Complexity
Underwriting Complexity Dynamic nature of the subject: Technological innovation > new business models > rearrangement of values at risk > legal responses: legislation, regulation, contract > Insurance 12-month contract based upon a snapshot view of risk in a context of continually- evolving thre
Slide 8: Underwriting Challenges
Underwriting Challenges Underwriters need: An understanding of the Insured’s business model in order to conceptualise the risk; Exposure data [of various types] in order to price the risk; Risk control information to assess the risk; and Sense of the loss context to undertake the risk. T