Lunch & Learn | Cloud failure and cyber insurance

We invite you to participate in our next Lunch & Learn on "Cloud failure and cyber insurance: calibration of stress scenarios and diversification". It's FREE and OPEN to everyone.

Given in English by our Scientific Advisor, Olivier Lopez, and our Actuarial TAP Consultant, Daniel Nkameni, this online session will take place on November 14, 2024, from 12:30 to 13:30.

Accreditation: 1 CPD | 6 PPC

Introduction

This Lunch & Learn will present the content of our Detra Note about the same topic.

The expansion of the cyber insurance market is constantly under the threat of an accumulation event that would simultaneously affect a large number of policyholders. Very few experiences exist on such catastrophes, apart from worldwide cyber attacks like Wannacry and NotPetya in 2017 (in a context where cyber insurance coverage was lower).

Nevertheless, the very nature of cyber risk makes the occurrence of such events plausible in the future. There is therefore a need for stress-testing in order to be sure that a portfolio can resist to such a crisis.

In this perspective, the EIOPA recently published methodological guidelines specific to cyber. One of the most concerning scenarios is the potential vulnerability of a cloud outage catastrophe, that is the failure of a cloud provider whose solution is shared by a significant part of the portfolio.

In the present work, we propose a way to model and calibrate such kind of cloud outage scenario. We also provide a way to measure the level of diversification of a cyber insurance portfolio, and how this diversification may protect against such events. A by-product of our methodology is to provide guidelines to underwriters to help reduce the vulnerability of a portfolio to these cloud outage scenarios.

About the speakers

Olivier Lopez is a professor at ENSAE in Paris (FR) and also co-director of the Master 2 in Statistics, Finance and Actuarial Sciences. He is a Qualified Actuary and has a compelling academic background developed in prominent universities. At Detralytics, Olivier coaches young talents, provides cutting-edge training, fosters innovation and oversees R&D projects.

Daniel Nkameni is part of the Talent Accelerator Program (TAP) at Detralytics. He is an associate actuary at the Institute of Actuaries of France. He has developed expertise in various areas of non-life insurance. His skills also extend to team and project management. As a TAP consultant at Detralytics, Daniel plays a key role in Research and Development (R&D), particularly in the context of his doctoral thesis focused on parametric insurance.​ In addition to his work as an Actuarial Consultant at Detralytics, Daniel is currently working on a PhD thesis in parametric insurance applied to climate and cyber risks, in partnership with the CREST-ENSAE research laboratory.