Ariel Re and Hiscox Re & ILS announce launch of new cyber catastrophe consortium designed to improve certainty of coverage in the complex cyber insurance market.
London, UK, 25 April 2024: Ariel Re, a premier global reinsurance business with offices in Bermuda, London and Hong Kong and Hiscox Re & ILS, the reinsurance and insurance linked securities arm of specialist global insurer Hiscox, today announced the launch of CyberShock, an industry-first cyber catastrophe consortium.
The CyberShock consortium is designed to offer up to US $50 million of per-program capacity providing tailored, event-based protection for cyber insurers worldwide.
Through this consortium, insurers will benefit from improved certainty of coverage for key cyber incidents including service supply chain events, cyber propagation events, hardware supply chain events, software supply chain events, and/or catalytic cyber events.
Daniel Carr, Head of Cyber at Ariel Re, said, “Cyber catastrophe risk continues to be a major concern for the (re)insurance market, with a lack of scaled, sustainable solutions for systemic risk holding back growth in the market. Ariel Re is an established market for property catastrophe risk and has taken a lead role in the development of Cyber Catastrophe reinsurance products in recent years – increasing our reach in this area made sense. We wanted to find another leading reinsurance market to support engagement and involvement across the wider market, and Hiscox Re & ILS was the perfect partner given their long-standing cyber expertise.”
Matthew Wilken, Chief Underwriting Officer at Hiscox Re & ILS, added: “We are pleased to be partnering with Ariel Re, who share our goal to materially improve the existing market approach to cyber catastrophes. Against a backdrop of both a lack of clarity around cyber event definitions and meaningful capacity in the cyber reinsurance marketplace, we believe the CyberShock consortium can act as a positive catalyst for the market.”
ENDS
About Ariel Re
Ariel Re offers innovative insurance and reinsurance solutions and services through our offices in Bermuda, London, and Hong Kong, meeting the business needs of a diverse client base. Ariel Re operates principally through Syndicate 1910 in London and also offers access to Lloyd’s Europe via Syndicate 5336.
Originally founded in 2005, Ariel Re was acquired by Pelican Ventures and J.C. Flowers in November 2020. The new owners provide Ariel Re with significant capital resources and a long track record of supporting successful, entrepreneurial businesses in the (re)insurance industry.
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,000 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that.
For more information, visit www.hiscoxgroup.com
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