Arch to up cyber underwriting


Arch to up cyber underwriting

Bermuda re/insurer Arch capital is to increase its exposure to cyber in a market driven by fear, according to its CEO Marc Grandisson.

Speaking at a conference for market analysts and investors hosted by Bank of America Securities, Grandisson said the company was bullish on the sector. “We are doing some smaller risk; we are looking to do some bigger risk,” he said.

“Fear is driving the market right now,” he added. “This is the kind of market that Arch will do well in.”

While concerns about the risks had shrunk cyber insurance capacity, he told the audience that the same fear had also reformed corporate behaviour leading to a much greater focus on security. As a result, it was “the one line of business where moral hazard is really minimised”, he said with corporate and insurer interests fully aligned.

The last year had also brought increased oversight and far higher levels of “insight and questioning” from insurers, he added. Alive to the possibility of widespread losses from a big event, the company would remain prudent, he vowed.

“We are keeping track of our aggregates, but it is going to be manageable,” he said.

Arch Capital, increase, Bermuda, cyber, insurance, reinsurance

Bermuda Re