Cyber risk analytics provider CyberCube has confirmed that it acted as a modelling agent for the first private cyber catastrophe bond.
Portfolio Manager is a scenario-based data-driven model that provides insights for re/insurers and other risk professionals and allows stress testing of portfolios of insurance risk so that loss drivers and areas of accumulation risk can be identified.
According to Beazley, the $45 million private section 4(2) transaction is fully tradeable under Rule 144A resale and provides the firm with indemnity against all perils in excess of a $300 million catastrophe event. Further, there’s potential for additional tranches to be released through this year and beyond.
As we reported earlier, this cyber bond is backed by a panel of ILS investors, including Fermat Capital Management, and was structured by Gallagher Securities, the ILS division of reinsurance broker Gallagher Re.
“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,” commented Juan Marcano, Principal – Cyber Alternative Risk Transfer at CyberCube.
A recent report by CyberCube forecast that the ILS cyber market is likely to see real traction in 2023 due to more sophisticated modelling, the development of industry exposure databases and an increased understanding of cyber risk across the necessary stakeholders.
Full details of the cyber cat bond by Beazley and CyberCube, as well as all other ILS transactions since the inception of the market, can be viewed in the Artemis Deal Directory.
