“While there have been a few private cyber ILS transactions in the past, the industry is still waiting for the first 144a cat bond,” Brittany Baker, vice president of solution consulting at CyberCube, wrote in a report. “2023 is ripe for this to occur due to more sophisticated modeling, the development of industry exposure databases, and an increased understanding of cyber risk across the necessary stakeholders.” (Credit: Zapp2Photo/Shutterstock.com) “While there have been a few private cyber ILS transactions in the past, the industry is still waiting for the first 144a cat bond,” Brittany Baker, vice president of solution consulting at CyberCube, wrote in a report. “2023 is ripe for this to occur due to more sophisticated modeling, the development of industry exposure databases, and an increased understanding of cyber risk across the necessary stakeholders.” (Credit: Zapp2Photo/Shutterstock.com)

In the coming year, reinsurers will work with insurance-linked securities (ILS) fund managers to increase cyber reinsurance capacity, according to a forecast from CyberCube.

This prediction comes as demand for cyber insurance has traditionally outpaced the insurance industry’s capacity or willingness or write these risks. At the same time, the natural catastrophe ILS market has been shaken in recent years, according to CyberCube, which noted this is increasing the need to “present new asset classes to investors in a way that wasn’t necessarily required previously.”

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