Swiss Re has said it is biding its time before increasing its appetite for cyber risk, citing the newness of the sector.
Thierry Léger, CUO of the reinsurance giant said that while it was still underweighted in cyber, it was investing in research and development to better understand this line of business.
Léger said that while cyber demand had increased ‘significantly’, the industry has experienced results that were worse than expected.
This, combined with higher demand, has caused cyber pricing to increase massively.
Swiss Re, Léger said, believes that this type of risk is only partly insurable.
He indicated that Swiss Re would need to see more years and data before it increased its appetite in this sector.
Swiss Re has been building out a centre of expertise on cyber risks, having launched its central cyber underwriting team in September last year.
Back then, Swiss Re said the team would be led by AXA XL’s John Coletti and would assume responsibility for the group’s product development and underwriting activities in the cyber risk space.
Coletti was set to report to Gregory Schiffer, head of global specialty, and took responsibility for Swiss Re’s global cyber business, which includes portfolio ownership, global underwriting activities as well as cyber product development.