Risk and resinsurance specialist Guy Carpenter launched a new cyber reinsurance product designed to test the volatility of cyber risk.
Completing its first transaction under CatStop+ during the January 1, 2024 renewal period, the firm says it is a first-of-its-kind market-tested structure which leverages proprietary wording, flexible architecture, and analytics from Guy Carpenter’s CyberExplorer DataLake.
The approach aims to provide low-attaching catastrophic protection without the potential for basis risk and looks to strike 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.
Erica Davis, global co-head of cyber at Guy Carpenter, said: “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. We are thrilled to offer our clients the reinsurance solutions they need as the cyber market continues to evolve.”
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