Cyber catastrophe bond news

Speaking earlier today during Beazley’s earnings call for its Q4’24 results, Chief Executive Officer (CEO), Adrian Cox, revealed that the London headquartered specialty insurance and reinsurance underwriter, plans to sponsor more cyber catastrophe bonds in 2025 as it continues to grow.

Speaking in a recent video interview with our sister publication Reinsurance News, James Vickers, Chairman of Gallagher Re’s International division, suggested that the excess capacity coming into the insurance-linked securities (ILS) space will help to drive innovation and support the development of new lines of business.

Fitch Ratings, a provider of credit ratings, research, and risk analysis, expects to see a further expansion of alternative reinsurance capacity in 2025, supported by cyber catastrophe bond issuances, which will add to the reinsurance sector’s capital base and help absorb earnings volatility.

Since their introduction to the market in 2023, there’s now been 10 cyber cat bonds, and CyberCube, the cyber risk analytics provider, expects their coverage, along with cyber insurance-linked securities (ILS) solutions to narrow and become more targeted going forward.

Investment manager Man Group’s outlook for the catastrophe bond and related insurance-linked securities (ILS) market remains positive as the industry begins 2025, despite there being some distortion seen in industry index deals following strong investor interest.

According to broking group Howden, inflows are accelerating in ILS arrangements for casualty, managing general agents (MGAs), cyber insurance-linked securities (cyber ILS) and reinsurance sidecars, as capacity providers look to grow existing premium pools.

Lockton Re, the reinsurance arm of the independent broking group, has now confirmed the role former Gallagher Re executive Theo Norris has taken at the firm, appointing him UK Capital Markets Structuring and Cyber ILS Leader.

According to a new report authored by Tom Johansmeyer, Global Head of Index Classes, at broker Price Forbes Re, several forms of reinsurance could help support longer-term cyber re/insurance market growth, however, new sources of capital will have to form, along with participation from the insurance-linked securities (ILS) market.

Further innovation in risk modelling and policy standardisation can help the cyber insurance and reinsurance community unlock more support from the capital markets through catastrophe bond and insurance-linked securities (ILS) markets, the Geneva Association has explained.

During the Geneva Association’s media call on Global Risks & Insurance, Darren Pain, Director of Cyber, highlighted his expectation for continued growth in the cyber insurance-linked securities (ILS) market, though he noted this growth is likely to be gradual due to ongoing challenges.