Cyber insurtech Coalition has announced a new, multi-year capacity agreement with Aspen Specialty Insurance Company.
The collaboration aims to deploy cyber insurance capacity across the United States, commencing on or after April 1, 2024.
Under the terms of the agreement, Aspen will undertake a portion of Coalition’s U.S. surplus lines cyber insurance program for the current year. This milestone agreement builds upon Aspen’s existing support for Coalition in the United Kingdom and Canada, reinforcing their global partnership.
The capacity deal between Coalition and Aspen was facilitated by McGill & Partners, a leading insurance brokerage firm known for its expertise in navigating complex insurance arrangements.
Coalition continues to see robust interest in our innovative and profitable Active Insurance model. We continue consolidating capacity in the market because of our industry-leading underwriting results and capabilities
Shawn Ram, Head of Insurance at Coalition
“As the global cyber insurance market continues to grow, we remain committed to bringing clarity to this increasingly complex and critical risk. At Aspen, we view ourselves as more than a policy provider, working closely with our clients to add value to their businesses and mitigate the impact of claims,” said Bobby Bianconi, Global Head of Cyber at Aspen.
Global cybersecurity insurance market to yield an absolute value of $50 billion. U.K. market is expected to grow at a CAGR of 17.1% during the forecast period.
With a growing demand for cybersecurity insurances due to concerns with social media platforms and the growing digitization and threats in the BFSI industries, cybersecurity insurances are expected to grow rapidly in coming years.
With the growth of cloud-based technologies and the adoption of cloud-based storage systems, the market is projected to grow in the future.
Strategic partnerships can provide a company with the potential to expand its operational capabilities. Insurers provide smart and dynamic policies that can help recover a company’s financial losses in the market.
Bianconi added: “This agreement complements our evolving risk management program and services, and we’re excited to see how we can further enhance our insureds’ resilience to cyber risks by leveraging both our company’s combined technical expertise.”
Strengthened cyber resilience has continued to pay dividends into 2023, as resurgent ransomware activity in the first half of the year has so far not been accompanied by a corresponding rise in losses or claims (see How to Increase Resilience of Cyber Market?).
Concomitant benefits to underwriting results are yielding positive outcomes for insurance buyers, with programmes renewing flat or even with decreases as pricing comes off recent historical highs.
The war exclusions issue is centre stage currently, as the Ukraine war and rising geopolitical tensions elsewhere have prompted certain markets to look to clarify their positions around what is insurable (see Cyber Security Top Trends & Cyber Attack Threats). Cybersecurity has become a more dynamic field, rapidly adjusting and shifting to keep apace with business inventiveness.
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