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Re/insurer Ariel Re and Hiscox Re & ILS, the reinsurance and insurance linked securities arm of insurer Hiscox, announced the launch of CyberShock, a cyber catastrophe consortium.

The CyberShock consortium is designed to offer up to US$50 million of per-program capacity that provides tailored, event-based protection for cyber insurers worldwide.

Through this consortium, insurers will benefit from improved certainty of coverage for key cyber incidents including service supply chain events, cyber propagation events, hardware supply chain events, software supply chain events, and/or catalytic cyber events.

“Cyber catastrophe risk continues to be a major concern for the re/insurance market, with a lack of scaled, sustainable solutions for systemic risk holding back growth in the market,” commented Daniel Carr, head of Cyber at Ariel Re, in a media statement.

“Ariel Re is an established market for property catastrophe risk and has taken a lead role in the development of cyber catastrophe reinsurance products in recent years – increasing our reach in this area made sense,” Carr added. “We wanted to find another leading reinsurance market to support engagement and involvement across the wider market, and Hiscox Re & ILS was the perfect partner given their long-standing cyber expertise.”

“We are pleased to be partnering with Ariel Re, who share our goal to materially improve the existing market approach to cyber catastrophes,” according to Matthew Wilken, chief underwriting officer at Hiscox Re & ILS.

“Against a backdrop of both a lack of clarity around cyber event definitions and meaningful capacity in the cyber reinsurance marketplace, we believe the CyberShock consortium can act as a positive catalyst for the market,” Wilken said.

Bermuda-based Ariel Re operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336. Originally founded in 2005, Ariel Re was acquired by Pelican Ventures and J.C. Flowers in November 2020.

Headquartered in Bermuda and listed on the London Stock Exchange, Hiscox Group employs over 3,000 people in 14 countries, with customers across the globe. Through the retail businesses in the UK, Europe, Asia and the US, it offers a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.

Source: Ariel Re and Hiscox Group

Topics Cyber Catastrophe New Markets