Cyber mutual Miris gets licence to start underwriting from 1 Jan

Cyber mutual Miris, which was set up by European multinationals in response to inadequate protection from the traditional market, has been granted an operating licence from its Belgian regulator and can begin underwriting from 1 January. Miris provides additional cyber capacity for its members as it seeks to integrate and enhance what is on offer from the insurance market. It was created by seven leading European multinationals and insurance industry veterans Danny Van Welkenhuyzen, Mark Pollard and Philippe Obert. The founding members include BASF, Airbus, Michelin and Solvay. MIRIS was incorporated in Belgium. It has been applying for a licence to operate from Brussels and offer European and worldwide cyber coverage to members based in the European Union (EU) and European Economic Area (EEA). This licence has now been granted. “The National Bank of Belgium, as regulator, needs to verify all aspects rigorously — the suitability of the members, of the governance structure, the feasibility and solvency margins of the business plan. We have worked closely with them for many months to satisfy the stringent requirements appropriate to the project,” said Miris CEO Van Welkenhuyzen. Miris will allocate up to €25m of capacity to each member during the first two years of operation. The mutual will operate in co-insurance with insurers, taking the wording and pricing from the market. The minimum attachment point for Miris will be €10m. The capacity granted is expected to increase to €30m in its third year. Chief operating officer Pollard explained that Miris aims to provide additional cyber capacity, and in the longer term help stabilise the market for its members. “That depends on the members being exceptionally well-protected against the risks. Miris will have a role in promoting and validating excellence in cyber risk protection, as well as providing risk transfer capacity,” he added. Miris will only offer cover to member firms. “Membership of Miris is predetermined and exclusive. It is a ‘capitalised mutual’ and membership is only granted after payment of the capital. This is different from the ‘commercial mutuals’, where the payment of premium confers membership,” it explains. To become a member, companies will need to go through a screening process to approve their financial strength and cyber risk management capability. “The board of directors of Miris gathers the output of the screening process and decides whether to submit a membership application to the general meeting of all the members, who then decide whether to accept the new member,” the mutual explains. There will be only one type of member. All members pay the initial capitalisation and participate in the general meeting, and have one vote at that meeting. “Furthermore, to ensure the continuing status as a mutual association, all members must maintain an insurance policy at all times during their membership (new members have a ‘grace period’ so that their first policy aligns with their annual policy cycle),” explains Miris.

Cyber mutual Miris gets licence to start underwriting from 1 Jan

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