Coalition plans further European expansion in 2025

US cyber insurance provider Coalition is continuing its international expansion and has told Commercial Risk that it plans to launch across more European countries over the next six to 12 months, having entered the Nordic market last week. Coalition now offers cyber insurance in Denmark and will begin accepting risks in Sweden on 8 May 2025. The company first expanded outside North America in 2022 with the launch of a UK office and then opened in Australia in 2023. Last year it entered continental Europe, establishing Coalition Insurance Solutions GmbH in Germany. As a managing general agent (MGA), Coalition’s policies in Germany and Nordic countries are 100% backed by capacity from Allianz Commercial. Coalition offers “active cyber insurance”, whereby risk transfer is packaged with cyber risk services, including risk assessments, threat monitoring, alerts and incident response. It currently targets companies in Europe with revenues of up to €1bn. Announcing the Nordic move, Tine Simonsen, Coalition’s head of insurance for continental Europe, told Commercial Risk that the MGA will continue its international expansion, including into Europe. Simonsen was unable to confirm which countries Coalition is considering at this time. “Our strategy is to be a trusted global partner with active cyber insurance, and we are looking to expand across European countries. It has been a very natural journey together with Allianz, as our capacity provider in Germany, to start our continental Europe journey in Germany. I am based in the Nordics, and I am excited to now launch in my home region today,” said Simonsen, who operates from Copenhagen, Denmark. “We will continue to expand into European countries and are looking at market opportunities. When deciding which countries to enter next, we look at gross written premium in the market, the SME market, and of course an analysis of our competitors. So you will see us enter further countries going forward, and announcing more ventures in the next six months,” she said. According to Simonsen, Coalition is offering a first-of-its-kind product in Europe. While some other insurers offer risk assessment and incident response services, typically through third parties, Coalition is the only cyber insurer in Europe with inhouse capabilities to provide active monitoring and alerts, she said. By offering cyber risk assessment tools and alerts, Coalition has 73% fewer claims than its peers, Simonsen claims. While Coalition’s “sweet spot” is small and mid-sized companies, it can write cyber risks of up to $5bn in the US. And there are plans to remove this cap in the near future. It also intends to expand its risk appetite in Europe over time and underwrite larger companies. “It is our goal to follow a similar path [to the US business in terms of target size]. We are starting with what we know best, but there are always opportunities to move up market,” a spokesperson for the company told Commercial Risk. Coalition is expanding internationally at a time of cyber market softening, acknowledged Simonsen. “The market is soft at the moment and we have seen premium decreases over the last year on cyber… [The market] can’t go much lower, however UK capacity providers have entered the European market and we still see new players and MGAs enter the market at high speed,” Simonsen said. Coalition is in the market for the long haul, she explained. “We are at the place where we are ‘long-term greedy’. We are in the market to provide support and services to policyholders for the long term. So it does not worry us that we enter a market in a soft market, and we do expect the market to turn at some point. For now, our main interest is to support as many businesses as we can,” she said. Coalition is also entering the Nordic market at a time of more frequent cyber claims in Europe. The uptick in claims frequency reflects increasing reliance on digital technology and artificial intelligence, as well as growing demand for cyber insurance from companies in the Nordics and other European countries, according to Simonsen. At the same time, cybercriminals continue to find new ways to attack at scale and extort companies, while increasingly targeting small and mid-sized firms. A recent trend has seen attackers target companies repeatedly with multiple extortion attacks and smaller ransomware demands, rather than seek large ransom values, explained Simonsen. “Most of the time, threat actors do find ways to extort companies on a regular basis. Companies that are not able to detect and identify the risk, and the affected part of their technology will find threat actors return quite rapidly,” said Simonsen. Despite growing awareness of cyber risk and the threat posed by ransomware groups, both large and small European companies continue to fall victim to attacks and suffer disruption to operations and supply chains. This may be due to a lack of adequate investment in IT security and business interruption, according to Simonsen. “If we look ten years back, cyber was an IT issue. Today, it is a boardroom discussion. But still we see the resources for IT technology and business interruption plans not rolled out across the entire organisation. One of the things we continuously recommend to our broker partners and policyholders is to make sure that everyone is aware they have a cyber policy, and they are aware of their internal business interruption plan,” she said.

Coalition plans further European expansion in 2025

Cyber MGA also set to target bigger companies

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