Aon secures reinsurance capacity for Aegis cyber product

Broker Aon Benfield has secured the reinsurance capacity for a cyber product developed by Aegis London’s Lloyd’s syndicate.

The product offers a comprehensive cyber risk management service, and allows Aegis’ policyholders to separately reinsure their cyber exposures with a panel of leading reinsurers, said Aon Benfield.

The Aegis London facility provides holistic cover against cyber losses, focusing both on operational and information technology breaches.

Rick Welsh, head of cyber insurance at AEGIS London, said: “In traditional property and liability reinsurance policies it can sometimes be very unclear whether cyber is covered, and this can lead to gaps in coverage and potential exposures for insurers. On the other hand, where cyber is covered there is the potential for much larger claims than reinsurers had anticipated, especially in relation to property damage. Our aim with this cyber product is both to highlight the potential for cyber losses in the market, and to provide a comprehensive, standalone coverage for those exposures. This allows insurers and reinsurers to better evaluate their cyber risks.”

Tom Wakefield and Jerry Blake, cyber experts and members of Aon Benfield’s Global Re specialty composite team, added: “Working with AEGIS London we have bridged a gap in the cyber sector by sourcing the high quality reinsurance capacity required to bring this product to market. Our composite team takes a holistic approach to client challenges to enable them efficiently manage and mitigate risk through multiclass reinsurance solutions.”