New cyber intermediary launched as capacity deal announced

Insurance provider Coalition has created a new reinsurance intermediary for the cyber market.

Called Coalition Re, the business provides capacity for non-proportional cyber reinsurance treaties and a white-labelled product with up to 100% quota share support.

It will be supported by a panel of capacity providers led by Aspen.

Shawn Ram, head of insurance at Coalition, said the his firm created the intermediary as “there is often a breakdown of information where reinsurers know less about policyholders than the primary insurers”.

He added: “Coalition Re is a new type of reinsurance provider whereby we equip carriers with deeper insights into the cyber risk in their books, which adds value far beyond simply adding capacity.

“By democratising Coalition’s industry-leading technology, we can better align interests with cedants and promote a more stable cyber reinsurance market.”

’Bottom-up view’

Coalition said its intermediary will use a “bottom-up view” to price non-proportional reinsurance contracts.

It aims to help cedants learn more about their cyber insurance policyholders and gain more insight into sources of risk within portfolios.

Ram said: “Coalition doesn’t rely on historical or third-party data. We have built a robust and innovative approach to cyber reinsurance underwriting, leveraging continuous, internet-wide data collection, artificial intelligence (AI)-enabled threat detection and real-world security and insurance expertise.”

Bobby Bianconi, global head of cyber at Aspen, added: “We see a significant opportunity for this new capacity and the unique cyber risk insights that will complement the offer, with Coalition well-positioned to deliver these value-add services to cedants.

“We look forward to the continued work we will do with Coalition to bring market-leading cyber coverage to clients.”