Cyber has all the hallmarks of becoming a peak peril: Syroka, Fermat Capital

Cyber risk is increasingly showing signs of becoming a peak peril and as the insurance-linked securities (ILS) sector continues to look for growth it makes sense to focus on these peak levels of the insurance and reinsurance risk tower, according to Joanna Syroka, Director of New Markets, Fermat Capital Management.

Cyber risk continues to evolve and expand as the world becomes increasingly interconnected and digitalised, and, at the same time, insurers, reinsurers and also ILS players are looking at ways to protect against the peril in both an effective and profitable manner.

In September, during the 2018 meeting of the reinsurance industry in Monte-Carlo, Artemis held its third executive roundtable in the region, and the potential for ILS to participate in the cyber risk space was one of the topics discussed by ILS and re/insurance market experts.

“Cyber risk has all the hallmarks of becoming another peak peril, if it’s not already. We were talking about where ILS can grow earlier and of course new markets and new frontier risks is one area of growth ahead.

“I think it makes fundamental sense for ILS to continue to focus on peak perils in the reinsurance market, and cyber…