Lockton Re Executes First Hybrid ILW for Property Cat and Cyber Risks

Lockton Re has completed the first industry-loss warranty (ILW) that combines property catastrophe and cyber risk triggers within a single limit structure. This innovative transaction is aimed at global cedants seeking efficient ways to manage their increasing US cyber exposures. The ILW allows clients to access protection against both types of losses through one transaction, utilizing independently reported industry loss indices. The cyber trigger is provided by PERILS in collaboration with CyberAcuView, while property losses are indexed by Verisk’s Property Claim Services. This development reflects the growing maturity of the cyber industry loss reporting and the evolution of the ILW market beyond traditional property-only applications. Lockton Re anticipates further growth in hybrid ILWs and collateralized reinsurance as the market adapts to new client needs.

Key Points: • Lockton Re executed the first hybrid ILW combining property and cyber risks. • The transaction enables clients to manage both property catastrophe and cyber losses under one structure. • The deal reflects the increasing maturity of cyber loss indices and the evolution of the ILW market.