New Investment Opportunities in Cyber for 2023

Investment into cyber insurance risk has attracted a lot of attention in the first quarter of 2023. With strong and growing demand from the corporate sector for insurance coverage of this type of risk, premium growth has been very healthy and third-party capital is eager to enter the sector. Although insurance-linked securities (ILS) have typically linked capital to other lines of insurance business, mostly so-called catastrophe or ‘cat’ risk linked to the occurrence of natural disasters, today cyber is drawing more and more investor interest. With a large protection gap and steadily rising demand for cyber coverage, investors can access strong risk-adjusted returns through collateralized reinsurance linked to cyber risk today.

In a recent article, co-founder and CEO of Vesttoo Yaniv Bertele, explains why this represents such an enticing opportunity for investors and why cyber is set to be one of the growth engines of the ILS asset class. Vesttoo are a leading provider of innovative, tech-driven ILS solutions, and are already active within cyber in partnership with major global insurers and financial institutions. Vesttoo connects insurers directly to the capital markets, allowing for transparent and efficient risk transfer to take place. Follow the link below to read Vesttoo’s take on this new investment opportunity and how we see the wider ILS asset class evolving in 2023.

Click here to read the full article.