Cyber

Reinsurers congregating in Bermuda flagged a lack of interest in helping under-capitalised Floridian insurers and under-priced diversifiers, with positive implications for ILS participation.

Beazley executives spoke of further growth prospects in the class, after its results revealed a 79% combined ratio for its cyber division in 2022.

Structures have been developed that would avoid “excessive capital trapping”.

The transactions would protect ceding (re)insurers against outages of the cloud.

The regulator examined carriers’ ability to model nat-cat and cyber events, with mixed results.

Beazley’s bond was hailed as a “great first step” but challenges remain, although others are already working on narrower cloud outage transactions.

The transaction is the first proportional deal for cyber risk in the capital markets.  

Beazley’s $45mn first-time cyber cat bond offered all-perils coverage, though some expected early deals to start with limited scope.

Scott Stephenson, former chairman, president and CEO of Verisk, will join CyberCube’s board after participating in the funding round.

The two ILS firms were among those participating in a $20mn fundraise for Elpha Secure Technology.

The deal will bring cyber modelling and analytics to the risk transfer market.

Cyber risk ILS will grow slowly in the short-to-medium term, S&P Global Ratings has predicted.