With cyber risk, tread quickly and wisely: Thomas Nuth, DeNexus

As conversations around cybersecurity and risk management increasingly occur at the board level, insurance-linked securities (ILS) investors and reinsurers should be excited, but must tread quickly and wisely, according to Thomas Nuth, Vice President of Marketing at DeNexus.

We spoke with DeNexus, a specialist provider of software for cyber risk quantification, as part of a series of showcase video interviews for the upcoming Artemis ILS NYC 2022 conference (held April 22nd in New York City).

In an insightful discussion, Nuth explored the DeNexus approach to cyber, provided an update on some of the issues facing the cyber market, and also discussed how the firm’s tools, both current and those it’s developing, help risk markets better understand the cyber risk landscape.

“Cyber risk insurance is needed to basically help, obviously – the way that we depend on critical services, infrastructure and energy – be more safe and reliable for us. But it’s also a huge business opportunity, that I think, will simultaneously support and cultivate innovation,” said Nuth.

“Risk insurance in general come about because there’s a need not because there’s a want or a demand for it, per se. Once it’s implicated though, you’re going to see the market grow substantially. We’re going to see cybersecurity tools and software, I think, find growing budgets for them,” he added.

At the same time, Nuth expects cybersecurity and risk management conversations to move up the food chain and increasingly take place at board level.

“So, thinking about that in that lens should make, at least we hope, and we are pretty sure that it will make ILS investors and reinsurers excited, that there is a secondary and multi-dimensional support and a need for their product.