Coalition has set up its reinsurance intermediary, Coalition Re, to offer capacity for non-proportional cyber reinsurance treaties along with a white-labelled cyber insurance offering to support cedants with up to 100% quota share.
The white-labelled product is designed to enable cedants to provide cyber cover as an endorsement to their current offerings.
Both the treaty coverage and white-labelled product are backed by a panel of capacity providers, with specialty reinsurer Aspen at the helm.
Coalition Re uses a bottom-up approach to accurately price non-proportional reinsurance contracts.
This helps primary cedants gain better insights into their cyber insurance policyholders and pinpoint key risk areas within their portfolios.
The white-labelled product also includes a wide range of risk mitigation tools and services previously exclusive to Coalition’s stand-alone Active Cyber Insurance policyholders.
Active Insurance supports policyholders before, during, and after a cyber event, distinguishing it from traditional policies that lack proactive cyber risk mitigation and response strategies (see Most Common Types of Cyberattacks).
Shawn Ram, Coalition’s head of insurance, highlighted the information gap in reinsurance, where reinsurers typically know less about policyholders than primary insurers.
Combine that with a lack of cyber expertise and proper data usage among reinsurers, and the result is inaccurately priced reinsurance contracts and a misconception around how to measure cyber accumulation exposure
Shawn Ram, Coalition’s head of insurance
“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 offers more than just capacity by providing carriers with deeper insights into the cyber risks in their portfolios. By sharing Coalition’s advanced technology, they aim to create better alignment with cedants and foster a more stable cyber reinsurance market.
Coalition Re’s underwriting approach integrates continuous internet-wide data collection, AI-driven threat detection, and expertise in security and insurance.
This enables a comprehensive understanding of the cyber risk landscape.
Coalition operates in the US, UK, Canada, Australia, and Germany, offering automated cyber alerts, expert advice, and access to global risk management tools through its platform, Coalition Control.
In 2023, Coalition launched CoalitionAI, an initiative that leverages generative AI and large language models to protect US brokers and businesses from cyber threats.
Ransomware remains a top cyber risk for organizations globally while business email compromise incidents are on the rise and will increase further in the ‘deep fake’ era.
At the same time, the war in Ukraine and wider geopolitical tensions are a major concern as hostilities could spill over into cyber space and cause targeted attacks against companies, infrastructure or supply chains, according to a report from AGCS about Cyber Risk & Ransomware Trends.
The insurer’s annual review of the cyber risk landscape also highlights the emerging threats posed by the growing reliance on cloud services, an evolving third-party liability landscape that means higher compensation and penalties, as well as the impact of a shortage of cyber security professionals.
