Coalition launches new cyber reinsurance product

Managing general agent Coalition announced the creation of its reinsurance intermediary, Coalition Re, which will provide capacity for cyber reinsurance treaties.  

The “active insurance provider” (which uses digital technology to help policyholders before, during and after an incident) will provide capacity for non-proportional cyber reinsurance treaties, says Coalition Re.  

It will also provide a white-labeled cyber insurance product — essentially, reinsureds will be able to offer cyber insurance as an endorsement to an existing insurance product offering, with up to 100% in quota share support. 

Shawn Ram, Coalition’s head of insurance, says in a release that the addition of the white-label product adds value beyond just reinsurance capacity to the market. 

“In reinsurance, there is often a breakdown of information where reinsurers know less about policyholders than the primary insurers,” says Ram. “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.” 

He says Coalition has democratized its technology, which in turn will “promote a more stable cyber reinsurance market.” 

The new reinsurance provider says it will give its reinsureds the ability to learn more about their cyber insurance policyholders and gain visibility into the sources of risk within their portfolios.   

That’s done through a ‘bottom-up view’ which assists in accurately pricing non-proportional reinsurance contracts, Coalition says. 

The product also includes a full suite of risk mitigation tools and services that are currently available for Coalition’s standalone active cyber insurance policyholders.  

The reinsurer will not rely on historical or third-party data, but will leverage “continuous, internet-wide data collection, AI-enabled threat detection, and real-world security and insurance expertise,” says Ram. 

Coalition Re will be available globally and supported by a panel of capacity providers, primarily led by Aspen Insurance Holdings Limited. 

 

Feature image by iStock.com/JuSun