Risk and reinsurance specialist Guy Carpenter has announced the launch of a new cyber reinsurance product, CatStop+.
The new offering, which marked its first transaction in the January 1, 2024 renewal period, is a market-tested structure that aims to mitigate the volatility associated with cyber risk. The product combines proprietary wording, adaptable architecture, and analytical insights from GC’s CyberExplorer DataLake.
This combination enables CatStop+ to offer low-attaching catastrophic protection, reducing the potential for basis risk. The design of CatStop+ effectively navigates the challenges faced by cyber re/insurers, achieving an equilibrium between coverage for peak perils, tail risk protection, and cost-effectiveness, it stated. Additionally, it clarifies the process of recovering losses from severe cyber events.
“CatStop+ offers our clients protection against cyber cat losses with transparency and timeliness. It addresses event definition basis risk concerns with a sleep-at-night aggregate stop loss cover, while also achieving cost efficiencies,” Guy Carpenter global co-head of cyber Erica Davis said.
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