Although it feels bigger to us and, no doubt, others working in the sector, cyber insurance remains a tiny fraction of total U.S. direct premium written (DPW). But cyber is growing much faster than other categories and will almost certainly require growing capital-markets support to cover systemic and tail risk.
“The issuance of Beazley’s $45 million Cairney cyber catastrophe bond, and Hannover Re’s $100 million, Stone Ridge Asset Management-backed retrocession cyber quota share arrangement, ‘represent the potential for a broader reinsurance source for the risk,’ according to Fitch Ratings.”
Source: Cyber ILS deals an opportunity to “lessen tail risk” for expanding product line: Fitch – Artemis.bm