Page 17 - Insurance Times October 2019

Swiss Re, Capsicum Re Arch Insurance (UK) Ltd and Marsh launche insurance

launche cyber reinsur- solution for digital assets
In collaboration with Marsh, the world’s leading insurance broker, Arch Insur-
ance solution
ance (UK) Limited has announced the launch of Blue
Vault, a new solution to provide insurance protection
for the secure storage of digital asset private keys held
in traditional vault facilities.
Blue Vault brings together companies dedicated to
providing insurance coverage for digital asset risks.
Legal and technical consulting support for Blue Vault was provided by global
Swiss Re and the specialist insur- law firm Norton Rose Fulbright. Blue Vault is the first insurance solution of its
ance broker Capsicum Re have re- kind to be placed in the specie insurance market.
cently launched a new holistic cyber Backed by syndicates Arch 2012 and Canopius 4444, Blue Vault is as well as
reinsurance solution. Decrypt offers other syndicates and underwriters at Lloyd’s of London. Available globally, Blue
a single, flexible, end-to-end solu- Vault provides limits of up to US$150 million and covers the loss of digital as-
tion to insurers’ cyber exposure sets due to internal and external theft, including employee collusion, and the
challenges, including embedded, si- physical damage or destruction of private keys.
lent, and affirmative cyber risks.
James Croome, Arch’s Vice President of Fine Art and Specie, said, “When it
Decrypt's modular approach is com- comes to the critical risk around the generation and storage of digital assets, it
prised of risk identification, quanti- is not just the way sensitive material is stored, but a complete and detailed
fication and transfer. It offers mar- understanding of the entire life cycle of the private keys. A breach at any stage
ket-leading cyber-risk evaluation ex- could cause a financial loss for our clients, so it is the secure generation, trans-
pertise and a lead line from Swiss Re fer and storage of knowledge, not simply the possession of data that is our
of up to USD 50 million per client paramount underwriting consideration. The importance of this distinction can-
with the support of a growing pool not be overestimated and our insurance policy wording was very deliberately
of risk transfer capacity. constructed to manage this risk.”

Anthony Cordonnier, Head Cyber
Product Management at Swiss Re, Lloyd’s registers half yearly pre-tax profit of £2.3bn in
said, "Decrypt gives insurance compa- 2019
nies a unique understanding of their
Lloyd’s has recently declared a pre-tax profit of £2.3bn for the first six months
portfolios' affirmative and silent expo-
of 2019 along with the publication of its interim results.
sures, and offers protection against
Lloyd’s profit before tax for the period was £2.3bn, un-
the aggregation of cyber losses across
different lines of business." derpinned by a combined ratio of 98.8% and investment
income of £2.3bn, as the market benefitted from
Maya Bundt, Head Cyber & Digital unrealised gains due to reducing US and UK bond yields
Solutions at Swiss Re, said, "Decrypt as well as robust returns from equities in the first six months of 2019.
is the first holistic cyber solution
that helps insurers identify and The quality of Lloyd’s balance sheet remains exceptionally strong, with net
manage their cyber risk exposures, resources growing to £32.4bn and the central solvency coverage ratio increas-
as well as meet growing regulatory ing to 266%. The financial strength of the Lloyd’s market was underscored by
and internal requirements." the recent affirmations of Lloyd’s ratings by Standard & Poor’s (A+ Strong), AM
Best (A Excellent) and Fitch (AA- Very Strong).
Ultimately, Decrypt delivers sub-
stantive immediate value to clients, Gross written premiums for the period to June 2019 were £19.7bn, represent-
while bringing Swiss Re and panel ing a 1.8% increase over the same period in 2018. However, the elimination of
reinsurers greater clarity and insight foreign exchange rate movements and growth from new syndicates points to a
so that they may offer bespoke risk like-for-like year-on-year reduction in premiums of 2.6%. This is the net impact
transfer solutions that really meet of a 6.5% reduction in business volumes as underwriters adjusted their books
their clients' specific needs. to improve performance and average risk adjusted rate increases of 3.9%.

The Insurance Times, October 2019 17