Guy Carpenter launches cyber reinsurance product
Guy Carpenter completed its first transaction using its just launched cyber reinsurance product CatStop+ in the January renewals.
The broker, a business of Marsh McLennan, said CatStop+ is a first-of-its-kind market-tested structure designed to address the volatility of cyber risk.
“Leveraging proprietary wording, flexible architecture, and analytics from GC’s CyberExplorer DataLake, the approach provides low-attaching catastrophic protection without the potential for basis risk,” the company said.
“CatStop+ helps solve many of the hurdles cyber re/insurers face, striking a balance between coverage from peak perils, tail protection and cost effectiveness, while bringing clarity to recovery of losses resulting from a severe cyber event.”
Erica Davis, global co-head of cyber, Guy Carpenter, said: “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.
“We are thrilled to offer our clients the reinsurance solutions they need as the cyber market continues to evolve.”