144a Catastrophe (“Cat”) Bonds are trade-able (re)insurance-linked securities (ILS) that “cover more remote risk and that coverage is on a named-perils basis, which provides a level of predictability.”
“’While there have been a few private cyber ILS transactions in the past, the industry is still waiting for the first 144a cat bond,’ Brittany Baker, vice president of solution consulting at CyberCube, wrote in a report. ‘2023 is ripe for this to occur due to more sophisticated modeling, the development of industry exposure databases, and an increased understanding of cyber risk across the necessary stakeholders.’”
Source: Insurance-linked securities & the future of cyber reinsurance | PropertyCasualty360