Cyber Catastrophe Cover Solution Backed by Capital Markets

Beazley and RenaissanceRe recently launched a reinsurance solution providing Beazley with additional catastrophe cover for cyber events. The majority of the security behind the deal will be provided by capital sources structured by RenaissanceRe.

Beazley said that placing cyber catastrophe risk into the capital markets provides a source of capital in support of its rapidly growing affirmative cyber offering in excess of levels currently available in the traditional reinsurance market.

Adrian Cox, Beazley chief underwriting officer, 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."