Cyber catastrophe bond news

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.

We’re told that the price guidance has been raised for the first industry-loss triggered cyber catastrophe bond deal, which is being sponsored by reinsurance firm Swiss Re, while the size of the Matterhorn Re Ltd. (Series 2023-1) transaction remains at $50 million so far.

Chubb has now successfully secured the 50% upsizing of its first cyber catastrophe bond Artemis has learned, with the East Lane Re VII Ltd. (Series 2024-1) transaction now priced to provide the company $150 million in cyber reinsurance protection.

International re/insurance giant Chubb is aiming to upsize its first cyber catastrophe bond deal by as much as 50%, Artemis has learned, with the East Lane Re VII Ltd. (Series 2024-1) transaction now targeted to provide the company $150 million in cyber reinsurance.