Beazley and RenRe unveil capital markets-backed cyber product
Beazley and RenaissanceRe have teamed up to launch a new reinsurance product providing Beazley with additional catastrophe cover for cyber events. The companies say it is one of the first cyber catastrophe insurance solutions backed by the capital markets.
The majority of the security behind the deal will be provided by capital sources structured by RenaissanceRe, giving Beazley access to more capital than would be available in the traditional reinsurance market, the groups said.
Adrian Cox, chief underwriting officer at Beazley, said the partnership allowed the insurer to deliver cyber cover to its growing client base whilst managing accumulations of risk within the group’s tolerances.
“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,” added Cox.
David Marra, chief underwriting officer for casualty and specialty at RenaissanceRe, said the re/insurer’s ability to address the emerging challenges of the market by structuring attractive opportunities for investors is a hallmark of its creative approach to risk selection, capital management and client service.
