cyber insurance

A new firm named Envelop Risk has launched to focus on cyber risk underwriting and analytics provision with experienced reinsurance capital markets executive Jonathan Spry at the helm, suggesting that the company may well look to cyber insurance-linked securities (ILS) in future.

A recent cyber hack attack on U.S. retailer Hudson’s Bay, owner of the Saks and Lord & Taylor store brands, is expected to cause a loss to insurance and perhaps reinsurance interests and as a result Property Claim Services (PCS) has designated the event and will produce an estimate of insured losses for it.

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.

Catastrophe risk modelling specialist RMS has launched the first probabilistic cyber risk model, a product it believes will help insurance and reinsurance entities allocate capital to cyber risks more robustly and could be a step forward in the tools available for ILS fund managers looking seriously at cyber risk.

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.

Welcome to the third annual Artemis ILS Bermuda Executive Roundtable in which participants discussed a mix of challenges and opportunities for the sector as it continues to expand its remit and push for growth, on the back of an extremely active loss year for sponsors and investors.

Welcome to the second Artemis Monte Carlo Reinsurance Rendezvous Roundtable, in which participants discussed the potential impacts of recent catastrophe events on the insurance-linked securities (ILS) sector’s investor base, and the broader marketplace, as well as emerging trends and challenges as the January renewal season fast approaches.

Property Claim Services (PCS) has published its first estimate for insurance industry losses from the Petya / NotPetya malware cyber attack that hit pharmaceutical giant Merck & Co. in June, putting the initial figure at $275 million.

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.