Aon & HSCM to offer cyber coverage
Global insurance and reinsurance broker Aon has collaborated with Hudson Structured Capital Management (HSCM) on the launch of a new product designed to protect re/insurers against systemic and catastrophic cyber events. The new cover allows for limits of up to $70 million and provides protection against increasing cyber loss aggregations on insurers and reinsurers’ balance sheets.
The new product is structured to protect the cedent from the effects of catastrophic cyber market losses emanating from events such as self-propagating malware or wiperware, distributed denial of service, a significant cloud outage, or certificate revocation.
“In addition to increased claims activity in the cyber market, the current global crisis has emphasised the need for re/insurers to protect for systemic events. We are enabling carriers to navigate new forms of volatility by expanding the cyber reinsurance and retro markets to address this risk’s inherent systemic exposures. Our methodology allows us to develop event definitions that achieve clarity and confidence for all parties. Combined with the multi-model approach from Aon’s dedicated cyber analytics team, this has enabled us to develop a platform with HSCM that allows capital markets to participate in the fast-growing cyber sector in a manner that works for both cedents and investors and, importantly, that enables investors to fund limits previously unseen in this space.” – International Head of Cyber at Aon’s Reinsurance Solutions, Luke Foord-Kelcey.
“We are excited to help cedents transfer their cyber risk through this innovative and ILS-friendly structure with Aon. This is a great example of insurance and ILS markets offering risk transfer solutions for intangible assets, an area of the market where we expect to see a growing number of opportunities in the years to come.” – Partner & Chief Underwriting Officer (CUO), HSCM Bermuda, Edouard von Herberstein.
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By leveraging CoverWallet, the insurtech startup Aon acquired in January 2020, Aon is further expanding the solutions and services it provides to 30 million small and medium-sized US businesses. New and existing clients now benefit from a dedicated team for small and middle market businesses, a user-friendly digital platform, and self-service tools.