Specialist insurer Beazley and reinsurer RenaissanceRe have jointly launched a product that provides Beazley with additional catastrophe cover for cyber events. The majority of the security behind the deal will be provided by capital market sources structured by RenaissanceRe.
This placing of cyber catastrophe risk into the capital markets opens up a new, larger source of capital to support Beazley’s rapidly growing affirmative cyber offering in excess of levels currently available in the traditional reinsurance market, said the companies in a statement.
Beazley and RenRe said they have launched one of the first cyber catastrophe insurance solutions backed by the capital markets.
“As the scale of the cyber threat to businesses continues to intensify, the challenge to the insurance industry is to ensure we continue to provide cover that responds as the risk evolves and capacity that is commensurate to the size of the risk,” said Adrian Cox, Beazley chief underwriting officer. “We are delighted to partner with RenaissanceRe to deliver valued cyber cover to our growing client base whilst managing accumulations of risk within the group’s tolerances.”
David Marra, RenaissanceRe’s chief underwriting officer – casualty & specialty, said: “We are pleased to partner with Beazley to provide a solution to businesses seeking higher levels of cyber insurance cover. Our ability to address the emerging challenges of the market by structuring attractive opportunities for investors is a hallmark of RenaissanceRe’s creative approach to risk selection, capital management and client service.”
Source: Beazley and RenaissanceRe
*This story ran previously in our sister publication Insurance Journal.