Cyber ILS market taps $750m for expanding insurance
Cyber insurance market is expected to more than double in size over the next decade.
The Cyber Insurance-Linked Securities (ILS) market is emerging as a key alternative capital source for the expanding cyber insurance sector, with over $750M invested in underwritten 144A catastrophe bonds, according to Gallagher Re.
Growing interest from ILS investors is positioning Cyber ILS as a tool for underwriters to manage systemic risks and expand capacity.
The cyber insurance market is expected to more than double in size over the next decade due to rising awareness of cyber risks.
As demand for Cyber ILS increases, more issuances from both new and existing participants are expected.
Sponsors looking to capitalise on this trend will need expertise in cyber risk, securitisation, and structuring.