Underwriting of cyber insurance and reinsurance risks is going to require “massive amounts of additional capital” to support what is expected to be a particularly fast-growing class of business, according to broker Gallagher Re’s Ian Newman.
Newman, who is the Global Head of Cyber at reinsurance broking unit Gallagher Re, explained that his firm sees cyber adding another ‘C’ to the property and casualty marketplace, becoming PC&C (property, casualty, cyber).
That’s a signal for how important cyber risks are set to become for the global insurance and reinsurance market and also hints at the role for alternative capital and insurance-linked securities (ILS).
