Guy Carpenter launches cyber CatStop+ to manage risk volatility

Innovative approach blends low-attaching cyber event cover with proven mechanics and attritional protection of aggregate stop loss

Guy Carpenter, the reinsurance broking business of Marsh McLennan, has created a new cyber reinsurance product CatStop+ and completed its first transaction  in the January renewals.

The broker said CatStop+ is a first-of-its-kind market-tested structure designed to address the volatility of cyber risk.

The product leverages proprietary wording, flexible architecture, and analytics from GC’s CyberExplorer DataLake, providing low-attaching catastrophic protection without the potential for basis risk, Guy Carpenter explained.

It believes CatStop+ can help solve many of the hurdles cyber re/insurers face, striking a balance between coverage from peak perils, tail protection and cost effectiveness, while bringing clarity to recovery of losses resulting from a severe cyber event.

“CatStop+ offers our clients protection against cyber cat losses with transparency and timeliness. It addresses event definition basis risk concerns with a sleep-at-night aggregate stop loss cover, while also achieving cost efficiencies,” said Erica Davis, global co-head of cyber, Guy Carpenter.

“We are thrilled to offer our clients the reinsurance solutions they need as the cyber market continues to evolve.”

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