Refocusing the Lens: An Updated Look at Cyber Model Divergence

We are pleased to share Guy Carpenter’s latest cyber research study, Refocusing the Lens: An Updated Look at Cyber Model Divergence.

This report is a follow-up to Guy Carpenter’s earlier study on modeling divergence, Under the Lens: Investigating Cyber Vendor Model Divergence, in this case presenting research based on the latest model versions while expanding the scope to include tail losses.

Some key takeaways include:

·         Revenue continues to be the key driver of model divergence at the mean and was found to be an even more significant factor at the tail.

·         Industry sector and country of domicile, on the other hand, were less important at the tail, where affected entities are highly correlated and individual characteristics are less distinct.

·         Impact of coverage on model divergence varies and is liable to fluctuate based on vendors’ reaction to recent events and the current threat landscape.