Guy Carpenter launches new cyber product to manage risk volatility

First transaction for the reinsurance specialist completed during the 1.1 renewal period

Guy Carpenter launches new cyber product to manage risk volatility


By Kenneth Araullo

Risk and reinsurance specialist Guy Carpenter has announced the launch of a new cyber reinsurance product, CatStop+.

The new offering, which marked its first transaction in the January 1, 2024 renewal period, is a market-tested structure that aims to mitigate the volatility associated with cyber risk. The product combines proprietary wording, adaptable architecture, and analytical insights from GC’s CyberExplorer DataLake.

This combination enables CatStop+ to offer low-attaching catastrophic protection, reducing the potential for basis risk. The design of CatStop+ effectively navigates the challenges faced by cyber re/insurers, achieving an equilibrium between coverage for peak perils, tail risk protection, and cost-effectiveness, it stated. Additionally, it clarifies the process of recovering losses from severe cyber events.

“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,” Guy Carpenter global co-head of cyber Erica Davis said.

What are your thoughts on this story? Please feel free to share your comments below.

Keep up with the latest news and events

Join our mailing list, it’s free!