
Gallagher Re launches index to track reinsurance pricing
It will report on pricing trends for Aggregate Excess of Loss reinsurance.
Gallagher Re has introduced the Cyber Risk Adjusted Rating (RAR) Index, a new measure to track changes in cyber reinsurance pricing relative to risk.
The index is designed to provide insight into the cyber risk landscape and pricing trends for Aggregate Excess of Loss reinsurance.
Ian Newman, Global head of Cyber at Gallagher Re, stated that cyber risk continues to grow and remains exposed to systemic and catastrophic events.
He emphasised the need for effectively priced non-proportional reinsurance solutions, making an index of the cyber reinsurance market a valuable tool.
The Cyber RAR Index adjusts for expected changes in risk, considering factors such as rate movements, loss trends, and catastrophe model selections.
Unlike property reinsurance, where limits are directly linked to risk, cyber reinsurance requires a proprietary view of risk to track pricing changes accurately.
Aggregate Stop-Loss and Aggregate Excess of Loss structures have been the preferred non-proportional reinsurance solutions for cyber risks since their introduction around 2015.