While it has been growing its cyber underwriting business, specialist insurer Beazley has also implemented a robust hedging strategy to control the tail, recently securing a $290 million cyber industry loss warranty (ILW) cover and securing its third PoleStar Re cyber catastrophe bond.
As Artemis reported a few weeks ago, Beazley secured $210 million in cyber reinsurance from its third 144A PoleStar Re cyber cat bond in September.
Now, at a company presentation made yesterday, Beazley’s senior team revealed the completion of a $290 million cyber industry loss warranty (ILW) as well, to provide the firm even more tail risk cover for catastrophic cyber loss events.
Added to the now $510 million of outstanding PoleStar Re catastrophe bonds, it means capital markets are playing a significant role in Beazley’s $1 billion of cyber reinsurance as we understand there to have been some capital market support for the cyber ILW as well.
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