The increased amount of data cloud providers can provide as more information moves to the cloud will help insurers write cyber risk and their policyholders in turn, say insurers and a cloud provider.
"From an insurance perspective, we like as much security as we can get," says Robert Parisi, New York-based head of cyber-North America for Munich Re's faculty and business unit. With organizations migrating to the cloud, "that process becomes easier."
Mr. Parisi spoke during a Tuesday session during the Risk & Insurance Management Society Inc's 2021 conference, which was practically held.
In March, the Munich Re and Allianz SE units, they offered a program that combined a new cyber policy with up to $ 50 million in limits, with cloud data from a Google LLC unit.
By 2024, more than 45% of IT spending will be moved from traditional solutions to the cloud, says panel moderator Monica Shokrai, risk advisor and actuarial, business risk and insurance for Google LLC in Mountain View, California. She cited data from risk consulting firm Gartner Inc., based in Stamford, Connecticut.
Mr. Parisi said risk aggregation is a concern that the insurance industry needs to be aware of and evaluate, "we really want to get our noses under the tent, to see what happens," why cloud migration is exciting to the extent that data about an organization can be shared.
Jody Yee, New York-based CEO, Alternative Risk Transfer, at the Allianz SE unit Allianz Global Corporate & Specialty, says insurance companies need to deal with a rapidly changing risk landscape, "It's complex," and many companies are still migrating, or planning to migrate, to the cloud, he said.
Mr. Yee said customers have traditionally struggled with risk management, as insurance companies have struggled to identify which providers the insured use, the extent of their commitment and the criticism of the services they provide.
Getting these resources from data from cloud providers provides greater insight so that insurers can manage their portfolios going forward, he said. It can create a sustainable risk transfer, Yee said.