Cyber catastrophe bond news

There remains a relative dearth of cyber risk models for insurance and reinsurance markets to use, compared to the availability of risk modelling tools and analytics for other lines of business. So when a new company launches dedicated to cyber risk and with the backing of tech giant Symantec Corporation it’s worth a closer look.

Hiscox Re & ILS, the reinsurance and third-party capital management unit of global re/insurer Hiscox, has announced that it is to offer a new cyber industry-loss warranty (ILW) product, which will provide aggregate limits based on the use of a PCS industry loss trigger for global cyber underwriting losses.

In an interview with A.M. BestTV at Artemis’ second ILS conference in New York City, PCS Assistant Vice President (AVP), Tom Johansmeyer, discussed the potential for the insurance-linked securities (ILS) market to expand further into the cyber space, after proving its worth in 2017.

There’s an opportunity right now to trade industry loss warranties (ILW’s) linked to cyber reinsurance risks, as a unique set of circumstances make ILW instruments a good fit for transferring cyber exposure, according to Tom Johansmeyer, Assistant Vice President, PCS Strategy & Development at ISO.

It is only a matter of time before cyber risk is transferred to the capital markets in a meaningful way, thinks Jean-Louis Monnier, global head of ILS structuring at global reinsurance firm Swiss Re.

Property Claim Services (PCS) has announced the launch of PCS Global Cyber, a new loss aggregation service that offers industry loss estimates for individual affirmative international cyber events and can provide an index trigger for cyber risk transfer contracts, such as ILW’s or catastrophe bonds.