1. Cyber Risk: The Implications for Reinsurance Simon Cooper Partner, Ince & Co LLP

2. The Threat Cyber now as big a threat as natural catastrophes?
Silent cyber cover
How big is it really?

3. Large Loss Examples North East US Blackout
$243bn - $1tn impact on the economy
$ $71.1bn insured loss
Cloud Server Disabled
$4.6bn - $121bn loss
$620m - $8.1bn insured loss
Mass Vulnerability Attack
$9.7bn - $28.7bn
$762m - $2.1bn insured loss

4. Coverage Issues
Date of loss
Reporting
Exclusions

5. Aggregation of Cyber Losses
Events, causes and originating causes
The Hours Clause
Alternative Bases of Aggregation

6. Events and Causes American Centennial v. INSCO Non-physical event
Sudden
Significant Causal Link
Fortuitous
Cause
State of Affairs
Absence of something happening
Originating Cause

7. Hours Clause
“…a Loss Occurrence includes all insured losses which arise directly from the same cause and which occurred during the same period of time and in the same area. Such cause is the peril which directly gives rise to the losses” “…if the number of Loss Occurrences cannot be determined by reference to [the above] the parties agree to seek expert advice …” “…one Institution…” “…one country…”.

8. Other Aggregation
Any one named virus
Any one incident
Each year
ILW