Cyber ILS – Cyber Insurance-Linked Securities news

Appetite for cyber insurance-linked securities (ILS) and industry loss warranties (ILWs) experienced consistent growth in the first half of 2025, although at a reduced rate than the previous year, while cyber retrocession gained momentum with buyer interest significantly rising during the same period too, according to reinsurance broker Lockton Re.

According to a new report authored by Tom Johansmeyer, Global Head of Index Classes, at broker Price Forbes Re, addressing the need for liquidity is starting to make an impact towards the various constraints that currently stand that are limiting the rapid adoption of cyber catastrophe bonds.

While 2025 is already breaking issuance records for traditional catastrophe bonds, Artex Risk Solutions believes the insurance-linked securities (ILS) market is evolving into a more “significant force” across new risk areas such as casualty and cyber.

CyberCube, a specialist modelling firm for cyber risks and exposures, has launched Portfolio Manager Version 6 (PMv6), the latest version of the organisation’s catastrophe model that empowers portfolio-level insights.

Cyber risk could eventually stand alongside U.S. wind and U.S. earthquake as the catastrophe bond market’s third peak peril, according to a recent commentary from global independent alternative and active investment management firm, Man Group.

Reinsurance broker Guy Carpenter has announced the hire of former Moody’s Insurance Solutions cyber risk modelling and analytics specialist Damini Mago, as its new North American Head of Cyber ILS.

Cyber insurance-linked securities (ILS) remain a promising but constrained avenue for risk transfer, with structural complexity, limited market depth, and investor uncertainty continuing to hinder broader adoption, according to insights shared during a recent S&P Global Ratings webinar on cyber insurance.

The insurance-linked securities (ILS) market is continuing to evolve beyond traditional catastrophe bonds, with growing issuance in cyber and parametric segments, reflecting efforts to close protection gaps and provide alternative risk transfer solutions, according to a new report from AM Best.

Analysis from reinsurance broker Howden Re suggests that a cyber catastrophe industry loss event of $9 billion or more would result in more meaningful losses to the outstanding cyber cat bond market, and that cat bond may outperform on a recovery basis for cedents.

One of the prerequisites for a growing cyber insurance and reinsurance market is that availability of retrocession must increase, with the capital markets at scale needed to support event-based retrocession covers, according to broker Howden Re.