09 Jan 2020
AkinovA, the electronic marketplace for the transfer and trading of re/insurance risk, successfully completed a first of its kind parametric cyber risk transfer on 23 December 2019.
This transaction was carried out electronically with full regulatory oversight from the Bermuda Monetary Authority (BMA). AkinovA has an Insurance Regulatory Sandbox licence that was issued by the BMA in May 2019.
Hiscox, a leading specialist re/insurer, developed, structured, and provided capital for this innovative transaction with Guy Carpenter, a leading global risk and reinsurance specialist and a business of Marsh & McLennan Companies, broking the transaction. This was a quarterly cyber parametric instrument. PCS, a Verisk business, is the reporting agent.
The trade was carried out using a standardised insurance contract created in 2019 by Hiscox in conjunction with AkinovA and industry participants. The wording was donated to ACORD, the global standards-setting body for the insurance and related financial services industries.