The specialist insurer has announced the closing of PoleStar Re Ltd, the Series 2024-1 Class A notes “designed to cover remote probability catastrophic and systemic events. Structured on an indemnity trigger and per-occurrence basis, the bond runs for a two-year term through to the end of 2025.”
Capital from ILS (insurance-linked securities) will be increasingly important to the industry as it attempts to keep up with surging demand, and substantial underwriting risks, for cyber insurance coverage. “The cyber market is predicted to treble in size over the next four years. To get there we must keep evolving as a market to ensure we can provide cover for catastrophic events as demand and risk grows. Catastrophe bonds and the ILS market are vital to this,” said Paul Bantick, Beazley’s Global Head of Cyber Risks, in the release.
This report in Tech Monitor notes Beazley originally targeted PoleStar for $75 million. Its oversubscription seems to us a positive indicator for the nascent cyber insurance ILS market. Axis closed a $75 million CAT bond late last year.