With the new consortium, insurance companies are expected to gain greater certainty regarding coverage for significant cyber incidents. Credit: Monster Ztudio/Shutterstock.

Ariel Re has joined forces with Hiscox Re & ILS to launch a new cyber catastrophe consortium to enhance coverage certainty in the cyber insurance market. 

Called CyberShock, the consortium aims to provide up to $50m of per-programme capacity, offering bespoke and event-based protection for cyber insurance providers across the world. 

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With the new consortium, insurance companies are expected to gain greater certainty regarding coverage for significant cyber incidents such as hardware, software, supply chain, cyber propagation and/or service supply chain events. 

Ariel Re operates primarily through Syndicate 1910 in London and provides access to Lloyd’s Europe through Syndicate 5336.  

The company has offices in Bermuda, Hong Kong and London. 

Ariel Re head of cyber Daniel Carr said: “Cyber catastrophe risk continues to be a major concern for the reinsurance market, with a lack of scaled, sustainable solutions for systemic risk holding back growth in the market.  

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“Ariel Re is an established market for property catastrophe risk and has taken a lead role in the development of cyber catastrophe reinsurance products in recent years – increasing our reach in this area made sense.” 

Hiscox Re & ILS chief underwriting officer Matthew Wilken added: “We are pleased to be partnering [with] Ariel Re, who share our goal to materially improve the existing market approach to cyber catastrophes.  

“Against a backdrop of both a lack of clarity around cyber event definitions and meaningful capacity in the cyber reinsurance marketplace, we believe the CyberShock consortium can act as a positive catalyst for the market.” 

In other cyber insurance developments, last week, CRC Group, a wholesale specialty insurance broker with operations in North America, launched a new cyber practice.  

Separately, specialty reinsurance company Canopius joined forces with Group-IB to bolster its cyber insurance offerings. 

Group-IB, a Singaporean company founded in 2003, specialises in developing cybersecurity tools for spotting and stopping online fraud.   

With this agreement, Canopius’ clients will receive risk assessments, real-time threat alerts and well-informed strategies for mitigating threats.