Coalition unveils cyber reinsurance intermediary
Coalition unveils cyber reinsurance intermediary | Insurance Business Canada
Reinsurance
Coalition unveils cyber reinsurance intermediary
Offering includes “deeper insights” into the risk
Reinsurance
By
Terry Gangcuangco
Active insurance provider Coalition has launched its cyber reinsurance intermediary, Coalition Re.
The new entity will focus on offering capacity for non-proportional cyber reinsurance treaties and a white-labelled cyber insurance solution that provides up to 100% quota share backing for cedants looking to add cyber coverage to existing policies. Available worldwide, the offerings are backed by a group of capacity providers led by Aspen.
Shawn Ram (pictured), head of insurance at Coalition, noted: “In reinsurance, there is often a breakdown of information where reinsurers know less about policyholders than the primary insurers. Combine that with a lack of cyber expertise and proper data usage among reinsurers, and the result is inaccurately priced reinsurance contracts and a misconception around how to measure cyber accumulation exposure.
“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 democratizing Coalition’s industry-leading technology, we can better align interests with cedants and promote a more stable cyber reinsurance market.”
Coalition Re uses a bottom-up approach to accurately price non-proportional reinsurance contracts, enabling primary cedants to gain greater insight into their cyber policyholders and identify key risk factors in their portfolios.
Additionally, it offers a comprehensive white-labelled product that includes Coalition’s full suite of risk mitigation tools and services, previously available only to its standalone active cyber insurance clients. Unlike traditional policies, Coalition’s active insurance assists policyholders throughout the lifecycle of a cyber event, offering prevention, response, and recovery services.
“Unlike other reinsurers, 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, AI-enabled (artificial intelligence) threat detection, and real-world security and insurance expertise,” Ram added.
Bobby Bianconi, global head of cyber at Aspen, cited the “significant opportunity” for the new capacity and the unique cyber risk insights that will complement the proposition.
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