Fermat Capital Management, the specialist insurance-linked securities (ILS) investment manager, has licensed CyberCube’s Portfolio Manager software.
The deal will see Fermat begin to use the application, which helps risk carriers financial stress portfolios against a range of cyber-related scenarios such as ransomware attacks or outages.
Joanna Syroka, senior underwriter and director of new markets at Fermat, said: “We’ve been extremely impressed with CyberCube’s offering and the deep cyber risk insights that its products generate. Cyber is primed to become a peak peril for (re)insurers, creating a strategic opportunity for ILS to reduce stress on (re)insurance balance sheets.”
She added: “Developing a consensus view on cyber accumulation risk via a market-leading risk model will be a critical component of a future, scalable ILS cyber market for investors. We look forward to using Portfolio Manager to better understand cyber accumulation risks and are excited to partner with CyberCube as the cyber ILS market develops.”
CyberCube has been in the headlines here in recent months. Just over a week ago, the company outlined the four sectors it predicted would be at most risk from cyber criminals in 2022. In its Global Threat Briefing, CyberCube said that the four industries most likely to be targeted were healthcare, manufacturing, education, and utilities.
As Reinsurance News wrote back then: “It is not hard to throw a stone and hit a cyber-related story. As reported a few days ago on Reinsurance News, Allianz has said that cyber is the ‘top concern’ for businesses this year.”
Other cyber-centric stories recently on these pages include Raf Sanchez of Beazley predicted that the cyber landscape in 2022 was set to increase, while a number of analysts notes last week that rates within the cyber reinsurance market were continuing to harden.
