Cyber remains an intriguing new asset class in ILS market

2023 will go down as a transformative year for cyber risk in the reinsurance market. Cyber catastrophe modelling matured, new disclosure rules emerged, and innovative risk transfers like event excess of loss (XOLs) and cyber insurance-linked securities (ILS) took centre-stage.

That is the perspective of Brittany Baker (pictured), vice president of solution consulting at CyberCube, speaking to Intelligent Insurer, who described the year as “an inflection point for cyber in reinsurance”, with a range of market innovations and the emergence of cyber ILS.

Baker said the industry is witnessing a shift in the ways risks are being transferred, particularly in emerging asset classes such as cyber risk, where demand and coverage gaps are both growing exponentially.