Moody’s RMS has announced the launch of its Cyber Industry Steering Group to develop industry initiatives that respond to the growth of the global cyber insurance market. Moody’s said Munich Re, Gallagher Re and global cyber risk management firm Bitsight had joined the group, with other industry partners to follow.

Michael Steel, general manager at Moody’s RMS, said: “There is a clear need and a significant opportunity to accelerate growth in the global cyber underwriting market. However, there are many legitimate concerns around risk, regulation, and the lack of standardisation. We are therefore committing to significantly increase our investment in cyber modelling, as we see this effort as central in our role to help develop new markets for the industry’s growth.

“The introduction of Moody’s RMS Cyber Industry Steering Group represents a significant step forward in helping focus these investments and bring together industry-wide efforts to solve challenges and ultimately create a unified currency of risk across underwriting, aggregation, and risk management.”

Dr Jürgen Reinhart, chief cyber underwriter at Munich Re, added: “Cyber insurance is a dynamically developing line of business, projected to grow rapidly in the coming years. It is vital that this growth be underpinned by reliable and widely accepted models, both to foster a sustainable market and to ensure further capacity.

“Initiatives like these play a significant role in improving industry-wide understanding of cyber accumulation risk and underwriting quality, while also strengthening stakeholder confidence.”

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