New captive to support insurtech’s cyber growth

California insurtech firm Cowbell Cyber has launched a captive to provide additional capacity for its AI-powered cyber insurance product. According to the business, Cowbell Re will address the increased demand for cyber insurance, helping policyholders build cyber resiliency and close insurability gaps.

Cowbell, which launched in 2020, provides cyber insurance to small and medium-sized enterprises, driven by AI-assisted underwriting and including both pre and post-breach services. Its underwriting aims to improve risk selection, validated by below-industry reported claims (less than 1%) and responds in near real-time to emerging threats.

In 2021, the firm reached over $200 million in premium run-rate, and it expects to triple its policyholder base in 2022. The new captive will give the company more flexibility in addressing expanding demand from its distribution network of 2,000 agencies and 12,000 producers across the US.

“Cowbell’s cyber insurance platform brought innovation, efficiencies, and robust cyber coverage to the market as we developed the industry’s largest cyber insurance distribution network,” said Jack Kudale, founder and CEO at Cowbell Cyber. “With the launch of Cowbell Re, we are directly taking on risk and reiterating our commitment to empower businesses to minimize cyber incidents.”