cyber insurance

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.

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 […]

Despite some obvious limitations which can be overcome, 2023 will be remembered as the year when cyber insurance-linked securities (ILS) became a reality, with further developments expected in the year ahead, according to Jose Seara and George Mawdsley of DeNexus.

Data-driven cyber underwriting company Envelop Risk has announced the launch of a third-party investor backed special purpose arrangement (SPA) vehicle at Lloyd’s that will underwrite cyber reinsurance.

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.

The global cyber insurance market is expected to benefit from a growing pool of available reinsurance capital to cover cyber risks in 2024, with insurance-linked securities (ILS) and catastrophe bonds one of the solutions expected to expand in use, modeller CyberCube has said.