This is the first published study in this field to include SPoF (Single Point of Failure) data, which highlights the dependencies a company has on third-party systems and services. This paper represents a snapshot of our ongoing work exploring what is a deep and highly complex dataset.

At Gallagher Re, we have been exploring this data’s vast potential for several years. This research has informed the development of a suite of proprietary tools and services aimed at supporting the (re)insurance community in realising the potential of cyber data to enhance underwriting and portfolio monitoring. Principal among these is TIDE, our portfolio quality and benchmarking tool.

This paper explores the benefits of counterfactual analysis for cyber (re)insurers and provides a framework that can help exposure risk managers, actuaries, and catastrophe modelers incorporate it into their standard suite of risk assessment tools. The paper also contains some worked examples of cyber counterfactual analysis that Gallagher Re has conducted in collaboration with CyberCube.