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There is diversification to be found within cyber cat bonds and ILS: CyberCube

February 29, 2024

CyberCube, a specialist modelling firm for cyber risks and exposures, has analysed the four 144A cyber catastrophe bonds that have been issued to date and found that there is diversification between them, which it says means these first deals provide a solid base for future innovation.

Some $415 million in 144A cyber catastrophe bonds were issued in the latter stages of 2023, as the nascent cyber insurance-linked securities (ILS) market gained long-awaited traction.

In response to concerns that have been raised over whether the group of cyber catastrophe bonds issued so far are correlated with each other, CyberCube has performed a technical analysis of those deals, saying that it demonstrates the potential for risk diversification between them.

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