Cyber ILS – Cyber Insurance-Linked Securities news

When the first full 144A cyber catastrophe bonds came to market at the end of last year, it was critically important for their success that sponsors provided more than one view of their risk and allowed investors to have a multi-model view, to increase comfort with the new peril, speakers at the SIFMA ILS conference […]

The nascent cyber catastrophe bond and insurance-linked securities (ILS) market must grow to support the need for cyber insurance coverage, as traditional reinsurance risk tolerances are reached and the capital markets provides the perfect alternative, speakers at our recent ILS NYC 2024 conference explained.

Commenting this morning alongside his firm’s results announcement, Beazley Chief Executive Officer (CEO) Adrian Cox said that a “deep pool of capital” is required to support growing demand for cyber insurance, while the company’s CUO Bob Quane noted that the capital markets are now stepping up in support.

CyberCube, a specialist modelling firm for cyber risks and exposures, has analysed the four 144A cyber catastrophe bonds that have been issued to date and found that there is diversification between them, which it says means these first deals provide a solid base for future innovation.

With $415 million in 144A cyber catastrophe bonds issued in the latter stages of 2023, broker Gallagher Re is expecting activity levels to continue, according to Gallagher Securities’ Head of Cyber ILS, Theo Norris.

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 […]

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.