Global insurance market report [gimar]

12
Figure 2.3a:
Global reinsurance capital (USD billion, 2006 – Q3 2019)
Source: AON Benfield Reinsurance Market Outlook, January 2020
Figure 2.3b:
Property catastrophe bond issuance (USD million, 2007 – Q2 2019)
Source: AON Benfield Reinsurance Market Outlook, September 2019
trapped capital – where collateral is temporarily
“trapped” to act as a buffer against losses.
Renewals during 2018 and the beginning of 2019 
have seen moderate rate increases, particularly in 
regions and lines of business affected by natural 
catastrophes. Competitive pressures are still high, 
while the ability to release reserves decreased in 
line with lower solvency positions. Taking these 
developments into consideration, the European 
Insurance and Occupational Pensions Authority 
(EIOPA) emphasises the need for risk-adequate 
prices for reinsurers.
25

---

13
CHAPTER 3
3.1 CYBER-UNDERWRITING: 
REGULATORY CONSIDERATIONS
3.1.1 Introduction
This section provides an overview of the 
cyber-insurance market and the main risk 
management and regulatory considerations.
It concludes with a discussion on market
access and potential barriers to entry.
3.1.2 Market Overview
Defining key cyber-related terms
Cyber-attacks can affect the company itself, 
infrastructure providers (such as cloud services
and payment systems) and individuals whose 
data, identities and privacy may be exposed in
a data breach.
26
The Financial Stability Board’s Cyber Lexicon, 
published in November 2018, provides the
following definitions:
»
Cyber-risk 
is the combination of the 
probability of cyber-incidents occurring
and their impact.
»

A 
cyber-incident

is a cyber event that: 
1) jeopardises the cyber-security of an 
information system or the information
the system processes, stores or transmits; 
or 2) violates security policies, security 
procedures or acceptable use policies, 
whether as a result of malicious activity
or not.
»