Cyber catastrophe bond news

The US cyber insurance industry loss index launched by PERILS AG and CyberAcuView has been used for both a 144A cyber catastrophe bond and a cyber industry-loss warranty (ILW) transaction, the companies have said.

While the catastrophe bond market cheered the emergence of cyber cat bonds in 2023, fund manager Plenum Investments has offered a note of caution, saying that as they all cover cyber loss events that would be in the far tail, they are all correlated with little diversification on offer between them.

Broker Aon has successfully taken the structure it created for the first 144A cyber catastrophe bond and repurposed it to place a cyber insurance-linked securities (ILS) solution for one of the largest corporations in Europe, President Eric Andersen divulged today.

The successful issuance of the first full cyber catastrophe bonds in late 2023 was a watershed moment and the role of risk models in helping insurance-linked securities investors get up to speed on what is still a relatively new peril to the ILS sector was key, executives at Moody’s RMS told us in an Artemis […]

Despite some obvious limitations which can be overcome, 2023 will be remembered as the year when cyber insurance-linked securities (ILS) became a reality, with further developments expected in the year ahead, according to Jose Seara and George Mawdsley of DeNexus.

2023 saw the first public Rule 144A cyber catastrophe bonds and these presented an important test for the market, laying the foundations for cyber risk to become an asset and opening the capital markets to those seeking cyber reinsurance and retrocession, Brittany Baker of CyberCube has said.

Swiss Re secured $50 million of cyber industry-loss warranty (ILW) cover recently in a transaction that the broker involved, Gallagher Re, is hailing as the first cyber retrocession ILW ever traded.

Having recently completed the issuance of its debut 144A cyber catastrophe bond issuance, the $140 million PoleStar Re Ltd. (Series 2024-1) deal, Beazley now intends to keep scaling its presence in the cyber insurance-linked securities (ILS) market, Paul Bantick, Global Head of Cyber at the company said today.

The global cyber insurance market is expected to benefit from a growing pool of available reinsurance capital to cover cyber risks in 2024, with insurance-linked securities (ILS) and catastrophe bonds one of the solutions expected to expand in use, modeller CyberCube has said.

Artemis has now learned that global reinsurance firm Swiss Re has successfully priced the market’s first industry-loss triggered cyber catastrophe bond, securing the $50 million of coverage it had originally targeted from the Matterhorn Re Ltd. (Series 2023-1) transaction.