As cybercrime continues to surge, costing the global economy, by some estimates, $10.5 trillion annually by 2025, the cyber insurance industry is evolving to manage these escalating risks. In response to growing demand for more robust insurance solutions, Coalition has launched Coalition Re.
Coalition Re, a reinsurance intermediary, provides capacity for cyber reinsurance treaties and introduces new products to insurance carriers. Supported by Aspen, a specialty insurer and reinsurer, Coalition Re aims to address information gaps and improve tools for managing cyber risk.
Coalition Re will offer two products. One, a non-proportional cyber reinsurance treaties and also a white-labeled cyber insurance product with up to 100% quota share support. Coalition Re will make these products available globally through a panel of capacity providers led by Aspen. The aim is that this will allow insurance companies to offer cyber insurance as an endorsement to existing products.
“In traditional reinsurance, there’s often a breakdown of information where reinsurers know less about policyholders than the primary insurers,” said Shawn Ram, Head of Insurance at Coalition. “Coalition Re is a new type of reinsurance provider whereby we equip carriers with deeper insights into the cyber risk in their books, which adds value far beyond simply adding capacity.”
Ram explained that Coalition Re aims to move beyond relying on historical or third-party data by using continuous internet-wide data collection, AI-enabled threat detection, and cybersecurity expertise. “This approach allowed us to build what we believe is the reinsurance industry’s most comprehensive picture of the cyber risk landscape,” he said.
“Innovative Reinsurance”
Bobby Bianconi, Global Head of Cyber at Aspen, expressed support for the partnership. “We are thrilled to partner with Coalition on this innovative reinsurance offering to bring clarity to the increasingly complex and critical risk of cyber,” he said. “The unique cyber risk insights Coalition provides will bring a significant opportunity for new capacity and complement the existing offerings.”
Coalition Re seeks to use a data-driven approach to provide insurance companies with better visibility into their portfolios’ risk exposures and improve pricing accuracy for non-proportional reinsurance contracts. This initiative is part of Coalition’s broader efforts to expand its solutions for managing cyber risks in the insurance market.
Source: Coalition Announces Reinsurance Intermediary Coalition Re.
Other News: Reinsurers to Enter Cyber Market in 2024, Forecasts CyberCube Report(Opens in a new browser tab)
Other News: Ransomware Gang Targets Google Chrome Users In Surprise New Threat Twist.