Unlocking Cyber Risk

This is creating a unique opportunity for investors able to get a handle on the modeling of the underlying risks to participate in collateralised risk transfer transactions bringing more capacity to complement existing reinsurance capital.

With Lockton Re forecasting cyber insurance premiums to more than double from 2021 through 2025, the scale of the opportunity to investors willing to take on this emergent risk are substantial.

Key to making such details happen are advances in data analytics and risk modeling. Vesttoo’s Global Head of P&C and Speciality, Brian Kirwan, recently spoke to InsTech about the challenges facing the whole market, and what Vesttoo is doing to mitigate these.

Encouragingly, data produced by Moody’s recently suggested that loss ratios for cyber insurance have noticeably declined over the past few years. As the chart below shows, since peaking in 2020 at an industry average of around 65%, they are now closer to 40%, suggesting the market is making rapid progress in learning to accommodate cyber risk.

Follow the link below to read insights from Brian Kirwan on where the market for cyber risk is today and access a case study detailing one of Vesttoo’s recent cyber transactions.

https://www.instech.co/insight/four-keys-unlocking-cyber-ils-capacity-2023