Insurance and reinsurance linked investments specialist Hudson Structured has led a $35 million investment round in cyber risk analytics specialist CyberCube, with its founder Michael Millette taking a seat on its board.
Hudson Structured Capital Management Ltd. (doing its insurance investment business as HSCM Bermuda), the insurance-linked securities (ILS), reinsurance and transportation focused investment manager, has been one of the few ILS fund managers that have underwritten cyber risks for its fund.
At the same time, Hudson Structured has been making investments into a number of insurtech start-ups, largely on the distribution technology side of the marketplace or where their technology can help in understanding exposures.
As a result, an investment in CyberCube Analytics fits the strategy for Hudson Structured, whose founder and now CyberCube board member Millette said recently that cyber risk is set to be a “growth compartment” for the insurance-linked securities (ILS) market.
HSCM Bermuda led the $35 million Series B capital raise, alongside ForgePoint Capital, with the investment set to be used to propel CyberCube’s growth, as it looks to expand the usage of its software-as-a-service cyber aggregation risk modeling and individual risk underwriting tools.
Pascal Millaire, CEO of CyberCube, commented on the news, “Cyber represents one of the greatest market opportunities in the history of property & casualty insurance. CyberCube’s mission is to deliver the world’s leading cyber risk analytics to enable insurance institutions to take advantage of this opportunity in a data- driven way CyberCube is already supported by one of the premier venture capital investors in cybersecurity and we are excited to add one of the premier venture capital investors in InsurTech as an additional partner in achieving our mission.”
Michael Millette, Founder and Managing Partner at HSCM Bermuda, said on the investment, “Cyber risk is a huge opportunity for the global insurance sector that will require significant capital to support that growth.
“HSCM Bermuda is taking a holistic approach to the cyber sector, not just investing directly in the risk but also in companies that understand it and can help in making it more understandable. CyberCube is unlocking opportunity for risk transfer in developing data-driven risk analytics and modeling for cyber risk.”
Don Dixon, Chairman of the CyberCube Board of Directors and Co-Founder of ForgePoint Capital, added, “Cyber insurance is a growth sector for the insurance industry, but the industry is challenged in accurately pricing the exposure or understanding systemic risk. CyberCube brings expertise from the insurance, threat intelligence, and cybersecurity sectors to build market-leading technology for the insurance industry. CyberCube is fast becoming the industry standard of data-driven analytics and we are delighted to be driving its next phase of growth. HSCM Bermuda brings deep expertise in the insurance technology industry and we welcome them as a new investor in CyberCube and Michael Millette to the Board of Directors.”
CyberCube also plans to use the funding to help it broaden its client targeting from global insurance and reinsurance players, to include regional and national companies as well.