“From an insurance perspective, we like as much certainty as we can get our hands on,” said Robert Parisi, New York-based head of cyber-North America for Munich Re’s facultative and corporate unit. With organizations migrating to the cloud, “that process becomes simpler.”
Mr. Parisi spoke during a session of the Risk & Insurance Management Society Inc.’s 2021 conference.
In March, Munich Re and Allianz SE units they were offering a program that combined a new cyber policy with up to $50 million in limits, with cloud data provided by a Google LLC unit.
By 2024, more than 45% of IT spending will shift from traditional solutions to the cloud, said panel moderator Monica Shokrai, risk consulting lead and actuary, business risk and insurance, for Google LLC in Mountain View, California. She was citing data from risk consultancy firm Gartner Inc., based in Stamford, Connecticut.
Mr. Parisi said while risk aggregation is a concern the insurance industry must be aware of and evaluate, “we really want to get our noses under the tent, to see what’s going on,” which is why cloud migration is exciting to the extent data about an organization can be shared.
Jody Yee, New York-based managing director, alternative risk transfer, at Allianz SE unit Allianz Global Corporate & Specialty, said insurers have to deal with a fast-changing risk landscape, “It’s complex,” and many companies are still migrating, or planning to migrate, to the cloud, he said.
Mr. Yee said clients have traditionally struggled with managing the risk, as insurers have struggled to identify which vendors the insureds are using, the extent of their engagement, and the criticality of the services they provide.
Obtaining these resources of data from cloud providers provides greater insight so that insurers can prospectively manage their portfolios, he said. It can create a sustainable risk transfer, Mr. Yee said.
Source: Business Insurance
