Case Study: Gallagher Re strengthens cyber risk modeling with Moody's Analytics

Gallagher Re - Customer Case Study

Gallagher Re, a global reinsurance broker, sought to differentiate itself and grow the cyber reinsurance market by adopting a sophisticated, analytics-led approach to quantify and price the underlying risk. The challenge was the lack of historical data and the evolving, manmade nature of cyber threats like ransomware, which makes assessing systemic tail events and aggregation risk particularly complex. To address this, they partnered with Moody’s Analytics and leveraged its Moody’s RMS Cyber Solutions, including models and data licensed through the Intelligent Risk Platform.

The solution from Moody’s Analytics involved close collaboration to model catastrophic cyber risk, focusing on tail events like ransomware and cloud downtime. This provided Gallagher Re with the sophisticated frameworks needed to better understand and quantify systemic risk, which they then shared with clients to help grow market capacity. The partnership helped the reinsurance broker demonstrate capital certainty, contributing to the measurable growth in the cyber aggregate XL reinsurance market, which increased from $1.5 billion to $2.0 billion between 2019 and 2020.

Gallagher Re

Justyna Pikinska

Head of Specialty Analytics