Specialist insurer Beazley revealed it has created a new cyber coverage capital solution in conjunction with reinsurer RenaissanceRe.
The product will provide Beazley with additional catastrophe cover for cyber events. The majority of the security behind the deal will be provided by capital sources structured by RenaissanceRe.
Adrian Cox, Beazley chief underwriting officer, (pic) said: “As the scale of the cyber threat to businesses continues to intensify, the challenge to the insurance industry is to ensure we continue to provide cover that responds as the risk evolves and capacity that is commensurate to the size of the risk. We are delighted to partner with RenaissanceRe to deliver valued cyber cover to our growing client base whilst managing accumulations of risk within the group’s tolerances.”
The underwriter said the placing of cyber catastrophe risk into the capital markets “opens up a new, larger source of capital to support Beazley’s rapidly growing affirmative cyber offering in excess of levels currently available in the traditional reinsurance market”.
David Marra, RenaissanceRe’s chief underwriting officer – casualty & specialty, said: “We are pleased to partner with Beazley to provide a solution to businesses seeking higher levels of cyber insurance cover. Our ability to address the emerging challenges of the market by structuring attractive opportunities for investors is a hallmark of RenaissanceRe’s creative approach to risk selection, capital management and client service.”