Investor appetite is strong for more cyber ILS deals

As demand for cyber insurance grows, capital markets investors can meet capacity needs thanks to the development of innovative cyber ILS structures, as Beazley has now demonstrated. Paul Bantick, global head of cyber risks, Beazley, spoke to Intelligent Insurer.

There is clear investor demand, including from non-insurance-related investors, to take cyber insurance risk—a demand that can now be tapped thanks to innovative structures developed by carriers including Beazley designed to transfer these risks into the capital markets.

That is the view of Paul Bantick, global head of cyber risks, Beazley. Speaking to Intelligent Insurer in a video interview, he said it is clear that demand for cyber insurance coverage will increase exponentially to around $30 or $40 billion within the next few years—and an appetite in the capital markets to take these risks will become key to satisfying that need.

“The cyber markets are expected to boom in next four or five years, so this is not about something we need today. This is about the future of the cyber market and where it’s going,” Bantick said. “Hopefully we’ll see a market emerging that can meet the growing demand that insurers are going to have. We want to grow as an industry and maintain the integrity of the product and keep evolving the product.”