Coalition Re will offer support for non-proportional cyber reinsurance treaties globally and introduce a white-labelled cyber insurance product with up to 100% quota share backing. This product is tailored for insurers looking to include cyber insurance as an endorsement to their existing offerings and is underpinned by a panel of capacity providers led by Aspen, a leading specialty insurer and reinsurer.
Shawn Ram, Head of Insurance at Coalition, highlighted the current challenges within reinsurance, particularly regarding the gap in cyber expertise and data usage among reinsurers, which often leads to inaccurately priced reinsurance contracts and a misunderstanding of cyber accumulation risk.
Coalition Re seeks to address these issues by providing cedants with deeper insights into their cyber risk portfolios. Ram explained, “Coalition Re is a new type of reinsurance provider whereby we equip carriers with deeper insights into the cyber risk in their books, which adds value far beyond simply adding capacity. By democratising Coalition’s industry-leading technology, we can better align interests with cedants and promote a more stable cyber reinsurance market.”
Coalition Re’s approach focuses on a bottom-up method of pricing non-proportional reinsurance contracts, offering cedants enhanced understanding of their policyholders’ cyber risks. In addition, it provides a holistic, white-labelled product that includes risk mitigation tools and services currently exclusive to Coalition’s standalone Active Cyber Insurance policyholders. Unlike traditional policies, which often lack comprehensive cyber risk mitigation, Active Insurance provides assistance before, during, and after a cyber incident.
Ram further emphasised Coalition’s innovative approach to underwriting, noting: “Unlike other reinsurers, Coalition doesn’t rely on historical or third-party data. We have built a robust and innovative approach to cyber reinsurance underwriting, leveraging continuous, internet-wide data collection, AI-enabled threat detection, and real-world security and insurance expertise. This allowed us to build the reinsurance industry’s most comprehensive picture of the cyber risk landscape and will set Coalition Re apart from other reinsurers.”
Bobby Bianconi, Global Head of Cyber at Aspen, expressed enthusiasm for the collaboration, stating, “We are thrilled to partner with Coalition on this innovative reinsurance offering to bring clarity to the increasingly complex and critical risk of cyber. We see a significant opportunity for this new capacity and the unique cyber risk insights that will complement the offer, with Coalition well-positioned to deliver these value-add services to cedants.”
