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PartnerRe is enjoying strong growth in the cyber space—and while it has a broad appetite for cyber risk it considers each transaction on its merits, says Catherine Rudow, senior vice president–professional lines at PartnerRe.
What cyber coverage do you offer?
PartnerRe is market leader in the cyber insurance space, partnering with insurance clients across the globe to provide reinsurance cover for the entire spectrum of cyber products. Demand is strong currently in the US and Europe, where most of the privacy regulation exists, and we are expanding our offering to meet growing demand in other parts of the world.
We work with our brokers and clients to provide protection for our cyber exposures across the full first-party suite of cyber coverages including data breach, business interruption, contingent business interruption and cyber extortion, as well as third-party liability, in the form of both traditional and non-traditional cyber coverages and treaty structures.
What limits do you offer clients?
As a leading global reinsurer, we can provide meaningful capacity and relevant risk-transfer solutions to manage cyber risk, primarily through quota share structures, with additional appetite for catastrophe covers. Our limits vary depending on the structure and terms of each treaty and we review each on a case-by-case basis.
What appetite for growth are you seeing at the moment and has that changed over the past year?
The cyber insurance market is continuing to expand at a rapid pace, attracting new buyers in the US and worldwide. Cyber insurance remains one of the few lines of insurance where there is continued organic growth, with cyber-related premiums quadrupling over the last five years.
In 2018, PartnerRe expects continued growth in the cyber sector, driven by increased education, headline losses, and new regulations, such as the General Data Protection Regulation (GDPR) which will be applicable for EU citizens. It becomes enforceable in May, bringing with it hefty fines and risk of reputational damage for companies that do not adequately protect the personal data of EU-based clients, employees or other third parties.
As the market continues to grow, and cyber insurance portfolios become larger, insurance companies will increasingly look to reinsurers to help them manage aggregation and we expect to continue to see demand for cyber risk transfer solutions.
What support and response do you offer clients?
PartnerRe has a broad appetite for cyber risk and considers each transaction on its merits. As a pure-play reinsurer that never competes with our insurance clients, we can focus 100 percent on supporting their needs as they continue to innovate in this space.
Our cyber team is extremely knowledgeable about cyber risk, both in terms of what we’re seeing today and how that risk is likely to develop over time. We use that knowledge to help our clients make the best possible decisions about how to manage their growing cyber insurance portfolios and aggregation risk.
Each year we help our clients track new developments in this fast-changing sector and provide market insight through our annual Survey of Cyber Insurance Market Trends, which can be found at www.partnerre.com. As members of the Geneva Association, we are contributing to a study that addresses the issue of aggregation risk in cyber—specialist insight that we can share with our clients.
How do you see the opportunity developing—would you consider any partnerships?
PartnerRe continues to work hard to provide innovative solutions for our cyber insurance clients and would consider all partnerships that provide added value to our brokers and clients in this space. We currently have a joint venture partnership to provide our insurance clients outside the US with a turnkey traditional cyber insurance product.
PartnerRe is always looking for innovative ideas and partnerships that add value to our clients, such as analytics or specialised turnkey products.
PartnerRe, cyber, insurance, transaction