Guy Carpenter launches new specialty practice for cyber risk

Guy Carpenter and Company has launched a new cyber reinsurance practice, focused on addressing what it says are “rapidly increasing” risks related to cyber security.

“Rapidly-developing computer technology and the unrelenting evolution of cyber risks presents one of the biggest challenges to the (re)insurance sector today,” Jeremy Platt, co-leader of the new Cyber Solutions Specialty Practice commented in a statement.

“In fact, cyber-attacks, along with technology failure, represent a greater threat than adverse weather, fire and social unrest combined,” he noted.

In 1999, the reinsurance broker launched what it says was the first-ever cyber liability reinsurance product, and the firm now represents roughly 65% of cyber liability writers in the global reinsurance market.

Its new practice is “uniquely positioned to explore and develop solutions that evolve beyond the traditional quota share reinsurance approach to cyber liability,” the company says.

In the last quarter of 2013, the practice designed and implemented a new “Cyber Cat” product that responds to what it calls the “systemic risk inherent in cyber portfolios.”

“Our clients require comprehensive solutions to manage the accumulation and concentration of cyber liability to large loss and systemic events,” Mike Brown, co-leader of the practice commented in the firm’s statement.

“We have and continue to develop new ways to address the correlation within a cyber-portfolio. As we have done for the past 16 years, we will continue to invest in creating cyber solutions that help our clients identify, mitigate and transfer an evolving range of risks.”