Coalition, an active insurance provider, has launched Coalition Re, a new cyber reinsurance intermediary that promises to revolutionize the reinsurance market with cutting-edge technology and expertise. The introduction of Coalition Re aims to address existing gaps and misconceptions in the cyber reinsurance sector by offering non-proportional cyber reinsurance treaties and a comprehensive white-labeled cyber insurance solution. This new offering is bolstered by a consortium of capacity providers, led by Aspen, and will be available to clients on a global scale. Coalition Re’s initiatives are specifically designed to add significant value by providing deeper insights into cyber risk profiles, thereby promoting greater stability within the market. The company’s pioneering approach combines continuous, internet-wide data collection, AI-enabled threat detection, and real-world security expertise to accurately price such complex reinsurance contracts.
Addressing Market Gaps with Advanced Data Collection
One of the main challenges currently facing the reinsurance market is the lack of sufficient information and cyber expertise among traditional reinsurers. This gap often leads to inaccurately priced reinsurance contracts and widespread misconceptions about cyber risk accumulation. Coalition Re is set to tackle this issue head-on by leveraging its unique methodologies in data collection and analysis. Through continuous, internet-wide data gathering and AI-enabled threat detection, Coalition Re will provide detailed insights into the cyber risk profiles of policyholders. This bottom-up approach ensures a more precise and informed risk assessment process, which is essential for accurately pricing non-proportional reinsurance contracts.
In addition to its innovative data collection techniques, Coalition Re aims to assist primary cedants in better understanding and managing key risk factors within their portfolios. By providing them with advanced tools and insights, the company seeks to empower them to make informed decisions and mitigate potential cyber threats more effectively. This proactive stance is a marked departure from the reinsurance industry’s traditional reactive approach, which primarily focuses on addressing post-event losses rather than preventing them. By pioneering these changes, Coalition Re hopes to create a more stable and resilient cyber reinsurance market for all stakeholders involved.
Comprehensive White-Labeled Solutions
Coalition Re offers a groundbreaking comprehensive cyber insurance solution, seamlessly integrating with existing policies to provide full cyber coverage. This isn’t just about mitigating losses post-cyber event; it includes preventive measures, responsive actions, and recovery services throughout a cyber incident’s entire lifecycle. Supported by a consortium led by Aspen, this holistic approach aligns cedants’ and capacity providers’ interests with advanced technological safeguards, marking a significant shift in coverage.
Shawn Ram, head of insurance at Coalition, underscored the intermediary’s role in democratizing the company’s leading technology. He said the goal is to equip cedants worldwide with tools and insights to better manage cyber risks. This approach is expected to build confidence among primary insurers and capacity providers, promoting a more stable reinsurance market. Bobby Bianconi, Aspen’s global head of cyber, acknowledged the significant opportunity that Coalition Re’s unique capacity and insights present, enhancing the overall value proposition for all parties involved.
In summary, Coalition Re’s launch aims to reshape the cyber reinsurance landscape, addressing market gaps, delivering deeper risk insights, and offering comprehensive white-labeled products. This pioneering approach promises to set new industry standards, ensuring cyber reinsurance is more accurately priced and effectively managed.
