Algorithmic Insurance Services, Inc., the wholesale broker trading as LIRG, has provided $15 million in quota-share (QS) reinsurance for New York-based managing general agent DLT Alert.
The reinsurance supports the launch of a new suite of embedded parametric cyber warranty products aimed at cybersecurity solution system providers. The first programme is due to go live next week, with the cover also extending across DLT’s growing pipeline of warranty offerings distributed through international channels.
DLT Alert’s warranties are intended to strengthen the value proposition of cybersecurity firms by incorporating financial protection linked to breaches at third-party suppliers.
Payouts are triggered when DLT Alert identifies defined cyber incidents affecting approved technology vendors used by policyholders. By way of illustration, organisations using CrowdStrike in conjunction with a supplier offering DLT Alert’s embedded protection could have been eligible for compensation following the CrowdStrike outage in 2025.
Reinsurance capacity is led by Ocean Re via LIRG’s newly established binding authority agreement, alongside support from a panel of additional risk carriers. This includes Ensuro, a Bermuda-based, blockchain-enabled insurance investment platform focused on embedded coverage solutions.
“We back underwriting companies that venture to do risk transfer differently, and sit at the leading edge of change,” commented Nick Lamparelli, Chief Programme Officer at LIRG. “DLT Alert is one of those. They have seen ways that cyber security and the transfer of cyber risk could be improved, and executed on their vision though an AI-driven, API-linked technology platform that smoothly delivers loss payments within 24 hours of loss verification. Their parametric product is a revolutionary advance in cyber risk transfer.”
DLT Alert CEO Brian Waltermire added: “Our Cyra platform uses real-time, verified cybersecurity telemetry as the trigger mechanism for cyber warranty coverage that is far more precise, observable, and controllable than conventional cyber insurance. DLT Alert creates improved outcomes for our end customers because the more cyber services they use, the better the coverage they can receive. It’s a living, breathing policy.”
LIRG Chief Executive Mark Groenheide said: “This is exactly the kind of innovation I created LIRG to support. Brian and his team at DLT Alert have used a parametric structure to close a coverage gap, and to help businesses run more smoothly in our tech-driven world. Old-fashioned insurance worked well to cover sunken ships and burned-down factories, but as technology penetrates business relationships at every level, new risks have emerged that conventional insurance simply cannot handle. At LIRG, we are ensuring that insurance moves ahead at the speed of technological change.”
