AIR Worldwide has begun work on an “advanced” cyber-risk model for insurers.

The tool will include latest incident data, real-time security ratings for companies, exposure information and supplier data in the “cyber supply chain”.

Security and cyber-data providers Risk Based Security and BitSight Technologies will collaborate on the project.

“The AIR Worldwide model will be critical to a true understanding of the financial implications of cyber attacks, including the aggregation risk associated with a mega-scale attack,” AIR Worldwide Manager and Principal Scientist Scott Stransky said.

“We’re developing a comprehensive cyber-industry exposure database that can enable us to better estimate potential financial losses to entire sectors and portfolios due to common vulnerabilities.”

Business executives have named cyber risk among the key threats to their operations.

A new report from Allianz Global Corporate & Specialty says it costs the global economy $US445 billion ($618 billion) a year.

“Cyber security is viewed as a top priority for many companies, and the importance and value of security ratings have already been realised across numerous industries,” BitSight Worldwide Cyber Insurance GM Ira Scharf said. “As more and more companies purchase cyber insurance, insurers are becoming increasingly concerned with aggregation risk.”