Hiscox expands cyber offering with new Industry Loss Warranty product
London (15 March 2018) – Specialist global insurer Hiscox has continued its focus on cyber with the launch of a new cyber Industry Loss Warranty (ILW).
This new product responds to an aggregation of cyber losses throughout the year and helps address the uncertainty around cyber tail risk for (re)insurers. It can therefore act as an effective hedging mechanism for cyber underwriters. While ILWs are common within the property reinsurance and retro markets, this is the first that responds specifically to cyber losses.
ILWs allow an organisation to take out coverage based on the total insured industry loss, rather than the losses of a specific insurer. With ILWs, a third party is required to be an objective decision-maker on the size of the market loss, which in this case is the PCS Global Cyber Index.
Mike Krefta, Hiscox Re & ILS CEO, explained: “We have big ambitions in cyber and our new cyber ILW is another important step forward in developing that market. We believe innovations like this demonstrate our technical abilities and willingness to be a market leader in emerging risks.”
The cyber ILW is part of Hiscox’s ongoing drive towards product innovation and bespoke client solutions. Other examples include FloodXtra, which Hiscox launched at the end of last year to provide reinsurance protection to US insurers in a deregulating flood insurance market, and FloodPlus, its London Market insurance product for US coverholders.
For further information please contact:
Lucy Hensher Lucy.firstname.lastname@example.org +44(0)20 7448 6619
Notes to editors
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.
The Hiscox Group employs over 2,700 people in 13 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.