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Cyber Reinsurance

Supporting insurers and fronting programs in the fast-growing SME cyber market across Latin America.

Specialty

Cyber is among the fastest-growing lines, with systemic accumulation risk that demands disciplined limits and aggregation control. Power Re participates selectively, often as a reinsurer within fronted programs.

Power Re approaches this line as a specialist: we assess each risk on its own merits, price it with actuarial rigor, and structure cover that genuinely fits the cedant’s exposure and objectives, never a one-size template.

Structures

How we structure it

The structures we most often deploy for this line, proportional and non-proportional, tailored to your book.

Fronted programs

Reinsurer slot within a licensed fronting structure.

Aggregation control

Strict limits to manage systemic accumulation.

Quota Share

Proportional support with clear caps.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Systemic accumulation, a single vendor or CVE affecting many insureds at once.
Rapidly evolving threat and silent-cyber ambiguity.
Sparse, non-stationary loss data.

Our appetite

SME and fronted cyber books with clear wordings, sub-limits and event caps.

Technical note

Quota-share with event and aggregate caps; strict accumulation control by common dependency and a conservative tail load.

Models

Actuarial modeling

The frequency and severity models we use to price this line, and the loss it aggregates to.

Frequency models

PoissonNegative binomial (clustering)

Severity models

Pareto / Generalized ParetoMixed / parametric (index)

Extreme-value tail (GPD)

$$\Pr(X>x)\approx \Big(1+\xi\,\tfrac{x-u}{\beta}\Big)^{-1/\xi}$$

Above a high threshold u, the tail follows a Generalized Pareto Distribution; systemic accumulation is modeled with clustering and, for agriculture, parametric indices.

Severity models

Severity model	Typical use
Lognormal	Body of the loss distribution, attritional claims
Gamma	Moderate, positively skewed claims
Pareto	Large claims and heavy tails
Generalized Pareto (EVT)	Extreme tail above a high threshold

Discipline

Our underwriting approach

The discipline is the same across every line we write.

Risk selection

We assess each risk on its merits and let marginal business go, growth by quality, not volume.

Pricing discipline

Experience and exposure rating, credibility-weighted, load the price for volatility and cost of capital.

Accumulation control

Clear limits manage concentration by event, geography and cedant across the portfolio.

Claims partnership

Fast, fair and transparent claims handling, the moment our promise is tested.

Why Power Re

Why cede Cyber Reinsurance to Power Re

✓
Specialist expertise
Deep technical knowledge of the line and of the Latin American market.
✓
Fast, clear decisions
A timely yes or no, with terms and capacity you can rely on.
✓
Financial strength
13× regulatory solvency coverage and a disciplined retrocession program.
✓
Long-term partnership
We co-design programs and stand with cedants through the cycle.

Let’s build resilient portfolios together

Partner with a reinsurer that combines technical discipline, financial strength and deep regional insight.

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