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Fermat Capital Management, LLC (Westport, Conn.), one of the world’s largest insurance-linked securities (ILS) investment managers, has licensed CyberCube’s (San Francisco) Portfolio Manager. The engagement marks the first time that a business that is neither a risk carrier nor an insurance intermediary has partnered with CyberCube.
CyberCube describes Portfolio Manager as a software-as-a-service application built specifically for the insurance community. It provides risk carriers with a streamlined approach to financially stress test portfolios of risks against a range of cyber-related scenarios such as ransomware attacks and cloud outages, the vendor says. CyberCube asserts that Fermat’s use of the product signals the growing relevance of cyber risk to businesses and markets beyond insurance. Portfolio Manager is used to analyze portfolios of cyber risk against a range of modeled cyber risk threats. It is a scenario-based data-driven model that enables organizations to analyze and communicate key messages on cyber exposures to both their senior leadership and their working teams.
“This partnership with Fermat breaks new ground for CyberCube,” comments Sean Omar, Sales Manager, CyberCube. “It demonstrates the growing relevance of cyber risk and an increasing focus on cyber risk accumulation. Understanding and quantifying these cyber exposures will be a prerequisite to tapping the ILS and capital markets for cyber risks. Fermat is a market leader in the ILS field and clearly grasps the increasing significance of cyber risks and the potential for growth in the ILS asset class.”
Founded in 2001 and based in Westport, Connecticut, Fermat provides investment services for its clients around the world, with over $8.5bn in assets under management.
Peak Peril for (Re)Insurers
“We’ve been extremely impressed with CyberCube’s offering and the deep cyber risk insights that its products generate,” comments Joanna Syroka, Senior Underwriter and Director of New Markets, Fermat. “Cyber is primed to become a peak peril for (re)insurers, creating a strategic opportunity for ILS to reduce stress on (re)insurance balance sheets. Developing a consensus view on cyber accumulation risk via a market-leading risk model will be a critical component of a future, scalable ILS cyber market for investors. We look forward to using Portfolio Manager to better understand cyber accumulation risks and are excited to partner with CyberCube as the cyber ILS market develops.”
Portfolio Manager complements CyberCube’s two other products: Broking Manager and Account Manager, which are designed for insurance intermediaries and risk carriers and are used by companies across the insurance ecosystem.