Ariel Re and Hiscox Re & ILS announced the creation of the CyberShock consortium. Based in London, this new initiative is a partnership between Ariel Re, a global reinsurance company with offices in Bermuda, London, and Hong Kong, and Hiscox Re & ILS, known for its expertise in reinsurance and insurance-linked securities.
The CyberShock consortium is designed to provide up to $50 million per program capacity, offering tailored, event-based protection for cyber insurers worldwide. The focus is on enhancing coverage against major cyber incidents such as service and hardware supply chain disruptions, cyber and software propagation events, and catalytic cyber occurrences.
Daniel Carr, Head of Cyber at Ariel Re, highlighted the importance of the consortium in the current insurance landscape, noting the challenges posed by cyber catastrophe risks. “As the cyber landscape evolves, innovative solutions like CyberShock are critical to manage these risks effectively,” said Carr. He added that partnering with Hiscox Re & ILS was strategic, leveraging their longstanding expertise in cyber risk management.
Reliable Risk Management
Matthew Wilken, Chief Underwriting Officer at Hiscox Re & ILS, commented on the consortium’s role in the industry. “CyberShock aims to address the significant gaps in coverage and capacity that have been a longstanding issue in the cyber insurance market,” stated Wilken. He emphasized the consortium’s goal to provide clearer and more reliable risk management options.
The launch of CyberShock represents a collaborative effort to improve the cyber insurance market by providing more structured and reliable coverage options against complex cyber threats. Ariel Re and Hiscox Re & ILS aim to enhance the market’s capacity to handle increasing cyber risks effectively.
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