Guy Carp launches ‘ground breaking’ cyber cat solution

Guy Carpenter has launched what is describes a “ground breaking” cyber reinsurance product to help insurers manage catastrophe risk and deliver more cyber cover for risk managers.

The reinsurance broker said its CatStop+ is a “first-of-its-kind market-tested structure” designed to address the volatility of cyber risk. The first policy was taken out during the 1 January 2024 renewals.

Guy Carpenter said CatStop+ uses proprietary wording, flexible architecture and analytics from the broker’s CyberExplorer® DataLake to provide low-attaching catastrophic cyber protection without the potential for basis risk.

It believes the new solution can help solve many of the hurdles cyber (re)insurers face, striking a balance between coverage from peak perils, tail protection and cost effectiveness, while bringing clarity to recovery of losses resulting from a severe cyber event.

The solution should help insurers feel more comfortable in covering cyber cat risk and reduce the need for more restrictive primary cover.

“CatStop+ offers our clients protection against cyber cat losses with transparency and timeliness. It addresses event definition basis risk concerns with a sleep-at-night aggregate stop loss cover, while also achieving cost efficiencies,” said Erica Davis, global co-head of cyber at Guy Carpenter.

“We are thrilled to offer our clients the reinsurance solutions they need as the cyber market continues to evolve,” she added.