Specialty insurer Beazley sponsored the first Cyber Insurance Catastrophe (CAT) bond recently, a new type of ILS or insurance linked security issued by a Bermuda entity. They announced the $45 million private placement on January 9, 2023. The bonds provide investors with a generous floating rate of interest and a return of principal in one year, provided that no single catastrophic event occurs across Beazley’s portfolio of cyber insurance policies that results in more than $300 million of losses. Any losses above $300 million incurred by Beazley on those policies as a result of that one event would be absorbed by the investors, up to the $45 million principal amount. The deal was marketed under an NDA, so not all of the details are available, but the bonds will not protect against losses from a state-sponsored cyberattack, which is typically excluded from cyber insurance policies as an act of war.
Insurance Linked Securities (ILS)
Insurance and Reinsurance Newsletter – September 2017
Locke Lord’s Insurance & Reinsurance Newsletter provides topical snapshots of recent developments in the fast-changing world of insurance. For further information on any of the subjects covered in the newsletter, please contact one of the members of our Insurance team.
In This Issue:
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ILS Market: A Deep Dive into the Harvey and Irma Waters
Yesterday, Locke Lord touched on the general implications of the recent devastation caused by Hurricanes Harvey and Irma on the Insurance-Linked Securities (“ILS”) market here. With Irma having now left the Florida keys (and reportedly having destroyed upwards of 25% of all homes in the area), it is now…
Harvey, Irma and the ILS Market
Not since Katrina in 2005 has the mainland United States been witness to a category 5 storm that resulted in widespread and costly devastation. Now, first Harvey, and then Irma. What does this mean for the ILS market? To begin with, the ILS market never billed itself as a replacement…
George Unleashes the Giant Peach
The global stock of insurance linked securities at the end of 2014 was approaching $25.2 billion. Yesterday George Osborne unleashed the giant peach for the United Kingdom in a seemingly measured statement but one full of promises.
“2.228 Global reinsurance – the government announced at Autumn Statement 2014 that it…
COMPLIMENTARY SEMINAR – 13th Annual Half-Day Insurance and Reinsurance Seminar
Please join us on June 5, 2014 for our 13th Annual Half-Day Insurance and Reinsurance Complimentary Seminar being held in our New York Office.…
SAVE THE DATE – 13th Annual Half-Day Insurance and Reinsurance Seminar
Please join us on June 5, 2014 for our 13th Annual Half-Day Insurance and Reinsurance Complimentary Seminar being held in our New York Office. …
Please Join Us – Edwards Wildman’s 2013 ILS Roundtable: The Convergence of Insurance and the Capital Markets – Complimentary Seminar – October 30, 2013
October 30, 2013
8:30 AM EST
Edwards Wildman Palmer LLP
750 Lexington Avenue, 8th Floor
New York, NY 10022 …