Cyber a growth compartment for the ILS industry: Millette, Hudson Structured

Cyber risk is set to be “growth compartment” for the insurance-linked securities (ILS) market, according to Michael Millette, who’s firm Hudson Structured has already underwritten a number of cyber deals on a collateralised reinsurance basis.

Speaking during a panel discussion on alternative reinsurance capital at yesterday’s PwC Insurance Summit in Bermuda, Millette, founder and managing partner of specialist insurance-linked securities (ILS), reinsurance and transportation focused investment manager Hudson Structured Capital Management, explained that he sees plenty of potential for investing more in cyber risk related transactions.

“We’ve actually completed multiple cyber ILS in the form of collateralised reinsurance of cyber risks,” he explained.

Hudson Structured takes a diversified approach to insurance linked investments and has developed a specialism in seeking out unique opportunities to add to its investment strategies.

“Cyber fits the market better than most people think, because the large majority of affirmative cyber that is being written is in a claims made form, meaning that the tail is limited.

“In a claims made form, the claim attaches to a policy…