AkinovA, the electronic marketplace for the transfer and trading of re/insurance risk, has completed its first cyber parametric instrument trade.
Hiscox developed, structured and provided capital for this transaction, with Guy Carpenter (GC) acting as broker and PCS as the reporting agent.
The deal was carried out electronically with regulatory oversight from the Bermuda Monetary Authority (BMA), and used a standardised contract created last year by Hiscox in conjunction with AkinovA.
Additionally, the wording of the contract was donated to ACORD, the global standards-setting body for the insurance and reinsurance industry.
“This first of its kind transaction is an important step towards creating new capacity urgently needed to underwrite the huge cyber risks which continue to emerge globally,” said Paul Jardine, former Chief Experience Officer at XL Catlin and Non-Executive Director of AkinovA.
“Largely rear view-mirror actuarial assessments of cyber risks can only go so far,” Jardine added.
“For new capacity to come to the market, cyber risks have to be tradable and conducted electronically within a regulated marketplace. That’s why AkinovA was created.”