In this video interview with Business Insurance, Guy Carpenter’s Jess Fung, Managing Director and North American Cyber Analytics Leader, discusses how cyber catastrophe models can be adjusted to help gauge cyber risk for small- and medium-size businesses (SMBs).
Guy Carpenter’s recent report, Small Businesses and the New Frontier of Cyber Catastrophe Modeling, is the result of joint research between Guy Carpenter’s Cyber Center of Excellence and At-Bay, a leading InsurSec provider to SMBs, to explore the current limitations in cyber catastrophe modeling of the SMB segment and to propose a way to adjust model output based on security control information.
“The challenge with current cyber models is that they struggle to reflect that disparity of cyber security posture. Because of the lack of credible cyber data on the SMBs, whether it’s historical incident data, or publicly available loss data, or technology dependency data, (credible cyber data) is much more scarce when it comes to SMBs,” Jess explained.
“That’s why our paper proposed a methodology, and what it does is to adjust the model output based on security control information that could be captured outside of the models, so that we can make the model results more tailored to SMBs and more meaningful,” she continued.
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