Guidewire Cyence Shines at DAV 2024

In April 2024, I had the opportunity to participate in the annual DAV (German Actuarial Association) event in Berlin, on the ASTIN panel of speakers. Here we had the platform to discuss our vendor modeler perspective on the current state of the Cyber insurance market, touching on some of the latest developments in the space over 2023 and the first half of 2024.

DAV is an established and respected professional organization in Germany, with a membership exceeding 6,500 financial and actuarial contributors. The association is dedicated to promoting financial and insurance research, enhancing public awareness, and engaging with political entities to advocate for fair and equitable insurance practices. ASTIN (Actuarial Studies in Non-Life Insurance) serves as an international forum and research community, addressing a broad spectrum of actuarial topics across various lines of business.

As a representative of the Guidewire Cyence team, my presentation covered a comprehensive range of topics over a span of 40 minutes, highlighting several critical areas:

• The general state of the cyber insurance market in 2024:

  • Size of the market and influencers / prohibiting factors on growth

  • Recent event commentary and expected industry impacts

  • Tightening of policy language and acknowledgement of nation-state excludability

• Challenges in attritional frequency modeling for cyber:

  • The establishment of an appropriate exposure base

  • Trend, development, and underreporting

  • Data availability concentration on US market

• The emergence of cyber Cat ILS products in the market

  • Availability of reinsurance capital in the cyber space

  • Divergent cyber vendor model tail results

  • Capital markets interest in diversification and high returns on investment

For those who wish to view the presentation, the full video recording is available here.

The insights shared underscore the evolving nature of the cyber insurance landscape and the critical role of actuarial science in navigating its complexities. The DAV event in Berlin provided a pivotal platform for industry leaders to exchange ideas and pave the way for future advancements in the field.