cyber insurance

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.

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.

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.

At the 2025 Artemis insurance-linked securities (ILS) conference in New York City, Richard Gray, Head of Third-Party Capital at specialist insurer Beazley, spoke with AM Best about the rapid growth and potential of cyber catastrophe bonds.

The growing demand for cyber insurance is driving increased interest in the cyber insurance-linked securities (ILS) market, with cyber catastrophe bonds emerging as a key tool for risk mitigation, according to a new report from S&P Global Ratings.

According to Gallagher Securities, the specialist insurance-linked securities (ILS) and investment banking arm of reinsurance broker Gallagher Re, the future of the cyber ILS market is not a question of growth, but rather how quickly the market can evolve to meet evolving opportunities and challenges.

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.

The global IT outage caused by a defective software update from CrowdStrike has highlighted the “persistent uncertainty” in the cyber catastrophe bond and insurance-linked securities (ILS) asset class, rating agency AM Best said, also highlighting that there is uncertainty surrounding the tail and potential for loss development, which it seems is misunderstood.