Hiscox introduces new cyber ILW
Hiscox Re ILS gets new portfolio manager
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Cyber represents a growth business for Hiscox Re & ILS and it is forming partnerships and investing to ensure it stays ahead of the game in this rewarding but challenging area of risk, says Damien Smith, head of specialty, Hiscox Re & ILS.
What cyber coverage do you offer?
Cyber is a growing area of focus for us and in Hiscox Re & ILS we offer predominantly excess of loss reinsurance: stop loss/aggregate excess of loss, aggregate excess per policy (limit and excess apply to an original insured’s aggregate losses in a year), occurrence excess of loss, and risk excess.
What limits do you offer clients?
Our maximum limit is typically $25 million per programme but we are in the business of providing bespoke solutions to our clients so we can demonstrate some flexibility to each client’s specific requirements.
What appetite for growth are you seeing at the moment and has that changed over the past year?
The original insurance marketplace is growing rapidly. Take-up rates are increasing in the commercial space and companies that already buy are buying bigger limits. The 2018 insurance market GWP is estimated to reach $4 billion whereas several estimates for 2020 exceed $10 billion.
This will drive demand in the reinsurance market, and is already manifesting itself in increased limits and a growing number of cedants. Another dynamic is that we are witnessing a shift from quota share to excess of loss which enables clients to retain more of the profit themselves.
What support and response to you offer clients?
In the reinsurance space, we offer our cyber clients lead support, meaningful capacity and the ability to price unusual structures. In our insurance operations, we focus on creating a market-leading product offering with the coverage that customers want and need, pre-loss services that will be of genuine value and benefit, and an attractive price point.
We have created a cyber virtual business unit, which provides a consistent vision for cyber across the Hiscox Group, and which our customers benefit from regardless of which part of our business they deal with. As a group we have also brought on board Robert Hannigan, ex-GCHQ, as a cyber special advisor, and are already benefiting from his impressive experience in this field.
How do you see the opportunity developing—would you consider any partnerships?
Partnerships is an area we see developing. For select clients we have helped them to create their own cyber product that we would then support with reinsurance, and we may look to do more of this in the future. At Hiscox we have a long history of writing business on behalf of partners, providing them with access to various lines of business, and cyber is no exception.
Hiscox Re & ILS, cyber, Damien Smith, challenges, risks