Specialist insurer Beazley and global reinsurer RenaissanceRe have partnered to launch a new reinsurance product that provides Beazley with additional catastrophe cover for cyber events. The majority of the security behind the deal will be provided by capital sources structured by RenaissanceRe, the companies said.

The firms believe the deal opens up a new, larger source of capital to support Beazley’s cyber offering in excess of levels currently available in the traditional reinsurance market. The product is one of the first cyber catastrophe insurance products backed by the capital markets.

“As the scale of the cyber threat to businesses continues to intensify, the challenge to the insurance industry is to ensure we continue to provide cover that responds as the risk evolves, and capacity that is commensurate to the size of the risk,” said Adrian Cox, Beazley chief underwriting officer. “We are delighted to partner with RenaissanceRe to deliver valued cyber cover to our growing client base while managing accumulations of risk within the group’s tolerances.”

“We’re pleased to partner with Beazley to provide a solution to businesses seeking higher levels of cyber insurance cover,” said David Marra, RenaissanceRe’s chief underwriting officer for casualty and specialty. “Our ability to address the emerging challenges of the market by structuring attractive opportunities for investors is a hallmark of RenaissanceRe’s creative approach to risk selection, capital management and client service.”