During Guy Carpenter’s virtual media briefing, the firm’s Global Co-Heads of Cyber discussed the growing demand for cyber reinsurance, which has been met with ample supply in the reinsurance markets.
Erica Davis, Global Co-Head of Cyber at Guy Carpenter, commented on the changing appetite for cyber reinsurance: “We are finding our clients have an enhanced view of risk, given the maturing of the market, and that’s really translated to a shift in risk appetite, as well as a change in sort of reinsurance strategy.”
She added, “Currently, there are a greater number of structures available and new sources of capital that can be accessed, and so cedents are definitely looking at ways to better protect their portfolios and sort of shift the more traditional style of buying they’ve had.”
Anthony Cordonnier, Global Co-Head of Cyber, echoed the sentiment about increased demand for cyber reinsurance and the rising appetite among clients for different and more complex structures. He noted that the market has successfully met this demand with adequate supply.
Cordonnier remarked, “Over the last couple of years, we’ve seen existing reinsurers in the cyber space both increase their appetites as well as new participants come in and satisfy the market with new capacity.”
He also shared his outlook for 2025, predicting that the supply-demand balance for cyber reinsurance will remain stable, with the reinsurance market continuing to meet demand at the January 2025 renewals.
“We continue to expect at 1.1 that the purchases from our cedents and the buying strategies will be met positively by the reinsurance markets,” Cordonnier concluded.
