Reinsurers prepare for rapid growth in cyber demand
Large reinsurers have repeatedly identified cyber as one of the fastest-growing lines in the market. As businesses digitize, demand for protection against data breaches, ransomware and business interruption keeps rising.
Meeting that demand responsibly is a challenge. Cyber losses can accumulate across many policyholders from a single event, historical data is limited and the threat changes quickly. Reinsurers therefore invest heavily in modeling, exposure management and clear policy wordings.
Their role is to provide the capacity that allows primary insurers to keep writing cyber cover, while setting terms that keep the overall portfolio resilient to a major systemic event.