Cyber ILS – Cyber Insurance-Linked Securities news

There are expected to be an increasing number of partnerships on cyber risk underwriting with insurance-linked securities (ILS) fund managers in 2023, according to cyber modelling specialist CyberCube.

Cyber risk analytics and quantification software specialist CyberCube has announced a successful raise of $50 million in capital to fund growth of the business, with reinsurance investment specialist Hudson Structured Capital Management (HSCM) participating again.

For industry loss warranty (ILW) markets opportunities are plentiful heading into 2023, but it’s up to the industry to take advantage of it as more concepts are expected to continue to gain traction, according to Tom Johansmeyer, Head of PCS, Verisk Insurance Solutions.

Global reinsurance giant Swiss Re has said this morning that the industry needs to adopt a different approach to cyber risk underwriting, while also repeating its call for the development of a cyber insurance-linked securities (ILS) marketplace.

Enhancing the terms and conditions around cyber insurance and reinsurance coverage, especially around cyber warfare and what is excluded from policies, is an important factor that can attract new capacity, including from the capital markets, Claudia Hasse of Munich Re has explained.

The fourth session at our Artemis London 2022 conference on September 6th featured a keynote speech and a panel discussion, both focused on the potential for cyber risk catastrophe bonds and what the market needs to do for the first cyber cat bond to be issued.

Cyber risk modelling specialist CyberCube has launched a set of exposure databases for cyber risk, claiming them as the first of their kind, something seen as a key pre-requisite for broader cyber insurance-linked securities (ILS) activity.

Coalition, a leading technology-focused cyber insurance company, has announced the launch of a Class 3B Bermuda based reinsurance company called Ferian Re Ltd. which is backed by third-party capital and will act as a kind of sidecar-like source of capacity to support its cyber insurance programs.

Fermat Capital Management, one of the largest specialist investment managers of catastrophe bonds and insurance-linked securities (ILS), has invested in cyber insurtech start-up Elpha Secure Technology, participating in its $20 million Series A.

Envelop Risk, a cyber underwriting company with a data-driven approach, has announced the launch of a Capital Markets unit, as it looks to partner with insurance-linked securities (ILS) funds alongside its own reinsurance vehicle.