CyberCube, the market leader in cyber risk analytics, has acted as a modelling agent for the first private cyber cat bond to bring additional reinsurance capacity to the market.
CyberCube’s Portfolio Manager was utilized as part of the creation of a $45m Insurance-Linked Securities (ILS) transaction by Beazley. Portfolio Manager is a scenario-based data-driven model that enables risk professionals to develop insights for their senior leadership and teams. It also allows stress testing of portfolios of insurance risk so that loss drivers and areas of accumulation risk can be identified.
The deal was structured and launched by Gallagher Securities, with the project driven by Gallagher Re’s Cyber division.
Juan Marcano, Principal – Cyber Alternative Risk Transfer, commented: “CyberCube is delighted that Portfolio Manager has been chosen as one of the analytical models informing this exciting transaction. We are committed to continuing to develop innovative solutions to help support the cyber insurance industry moving forward.”
CyberCube recently published a report forecasting the insurance market will see greater partnerships with ILS fund managers in 2023. The research “Cyber Predictions 2023” noted demand for cyber insurance has generally outstripped the supply the insurance industry has the capacity or appetite to support. It stated the ILS cyber market is likely to see real traction in 2023 due to more sophisticated modeling, the development of industry exposure databases and an increased understanding of cyber risk across the necessary stakeholders.