CatX integrates CyberCube’s analytics into risk capital exchange

CatX, a digital catastrophe and parametric risk exchange start-up, is integrating risk analytics from CyberCube’s Portfolio Manager product into its offering, to bring cyber risk modelling capabilities to users of its platform.

CatX wants to make the transfer of insurance risk faster and more efficient, while also encouraging alternative forms of reinsurance capital to connect with risk more simply, so the inclusion of risk analytics capabilities to help capital providers in their decision-making is an enhancement to the product offering.

Including CyberCube, a leading provider of cyber risk modelling and analytics, broadens out the potential for the CatX platform to be used for more than just natural catastrophe risks.

The goal is to empower brokers, insurance and reinsurance companies while they broaden their capacity bases, at the same time enabling institutional investors to gain deeper insights into cyber risks when making investment decisions.

CyberCube’s Portfolio Manager is a scenario-based catastrophe model that will deliver portfolio-level insights to users of CatX’s marketplace.

Users will also benefit from insights gained through CyberCube’s Industry Exposure Databases, which can help reinsurance firms and brokers to benchmark, perform sensitivity analysis on, and analyse cyber risks for instruments such as industry-loss warranties (ILW).

Ross Wirth, Head of Partnership & Ecosystem at CyberCube, commented, “This strategic partnership will help provide greater confidence to investors seeking additional access to investments such as industry loss warranties. We are thrilled to enable investor access to CyberCube’s leading models on the CatX platform, providing another source of capital in this quickly expanding market.”

Benedict Altier, Chief Executive Officer of CatX, added, “We are seeing strong demand from investors for cyber insurance-linked security (ILS) products and expect to see this segment expand significantly over the next few years. Alternative capital will play a critical role in improving the stability of the broader cyber market insurance market. Partnering with CyberCube will give brokers, insurers, and investors access to leading cyber risk analytics directly on the CatX platform.”

Lucas Schneider, Chief Technology Officer at CatX, also said, “Working with CyberCube will help us further our ambition to become the leading venue for cyber index-based and parametric reinsurance and retrocession transactions. CyberCube’s datasets will help to augment our ILS-analytics suite supporting risk-adjusted pricing, scenario analysis and benchmarking.”