Cerchia, a provider of decentralised risk transfer solutions, has successfully integrated a cyber cat industry-loss index, featuring data sourced from PCS (Property Claim Services), expanding its risk transfer capabilities, beyond classical Nat Cat.
The addition of this new risk Index expands Cerchia’s risk transfer capabilities beyond pure property catastrophe risk, which had been its focus up to now.
Its first transaction involved the seamless transfer of wildfire risk in California, while the second addressed a buyer’s need to protect against the increasing threat of catastrophic losses from cyber events.
Cerchia’s platform is a peer-to-peer digital tool that allows protection buyers to access institutional capital providers with no middlemen required. Both of the fintech’s transactions were peer-to-peer, fulfilling the firm’s direct risk transfer mandate.
They were executed by undisclosed buyers, which Cerchia notes reflects its platform’s “commitment to confidentiality and security,” while also showing how its platform allows for a unique, self-service approach, as businesses and insurance companies can directly place bids for protection on a dedicated board.
The recent developments are not only Cerchia’s latest milestones in the pursuit of growth and innovation, the firm explained, they also mark a significant stride towards making innovative protection affordable and accessible.
Back in September, the Swiss-headquartered fintech had revealed the trade of its first risk transfer. A buyer and seller came together to transact a $100bn PCS trigger Florida wind industry-loss arrangement on its platform.
