RenaissanceRe has backed a deal that provides Beazley with additional catastrophe cover for cyber events.
The majority of the security behind the deal will be provided by capital sources structured by global reinsurer RenaissanceRe.
This placing of cyber catastrophe risk into the capital markets opens up a new, larger source of capital to support Beazley’s cyber offering in excess of levels currently available in the traditional reinsurance market, according to the specialist insurer.
Beazley underlined the importance of its own “considerable” cyber expertise and claims data, combined with RenaissanceRe’s long track record of matching risk to capital to create innovative solutions for the market, to launching one of the first cyber catastrophe insurance solutions backed by the capital markets.
Adrian Cox, chief underwriting officer at Beazley, said: “As the scale of the cyber threat to businesses continues to intensify, the challenge to the insurance industry is to ensure we continue to provide cover that responds as the risk evolves and capacity that is commensurate to the size of the risk.”
“We are delighted to partner with RenaissanceRe to deliver valued cyber cover to our growing client base whilst managing accumulations of risk within the group’s tolerances.”
David Marra, chief underwriting officer for casualty and specialty at RenaissanceRe, said: “We are pleased to partner with Beazley to provide a solution to businesses seeking higher levels of cyber insurance cover.”
“Our ability to address the emerging challenges of the market by structuring attractive opportunities for investors is a hallmark of RenaissanceRe’s creative approach to risk selection, capital management and client service.”
Beazley promoted Beth Diamond to group head of claims in the US in November last year.