Envelop Risk launches cyber practice ILS Envelop Capital Markets | New

The new practice will develop a market for tail risk protection, retrocession and cyberreinsurance through indemnity, parametric and index structures.

Envelop Capital Markets will underwrite the transactions of Envelop’s Class 3A reinsurer, Augmented Re, and will structure and underwrite the transactions on behalf of the ILS funds.

This publication revealed in June that cyber technology modeling company and MGA Envelop Risk had chosen Bernina Re’s Ross to lead a new ILS practice.

At Bernina Re, he served as lead underwriter for US and retro business.

Ross had joined the Bermudian Class 3A Reinsurance Company in December 2019, initially as Head of Analytics, a role in which he was responsible for developing and managing the firm’s actuarial and analytical pricing capabilities. , provisioning and capital modelling.

In his new role at Envelop Risk, he will work closely with CUO Ari Chatterjee in Bermuda, as well as the firm’s Cyber ​​Risk and Portfolio Analytics teams in the UK.

Led by co-founder Jonathan Spry, Envelop Risk underwrites cyber reinsurance on behalf of MS Amlin AG using its proprietary modeling and analysis tools developed from its base in Bristol, UK.

The recent surge in cyber primary rates – fueled by soaring ransomware claims – has also spilled over to the reinsurance market, which is currently dominated by quota-share (QS) capacity.

Envelop Risk is expected to underwrite up to $200 million in gross written premiums in 2022, despite maintaining a cautious stance during April 1 renewals amid uncertainty from the conflict in Ukraine.

Envelop Risk underwrites both QS reinsurance and excess of loss reinsurance and is considered the industry’s largest cyber marketplace for the latter.

Ross’ arrival is another example of the group’s strengthening of its senior underwriting skills since a landmark deal with SoftBank last year, which saw the firm raise $130 million for a post-money valuation. of $400 million.

Earlier this year, he appointed Simon Welton, Swiss Re’s P&C Market Head for UK & Ireland, as Executive Vice President, focusing on client management and partnership development.

Ross commented, “Envelop Risk has developed market-leading capability in cyber reinsurance underwriting, backed by best-in-class analytics.

“At Envelop Capital Markets, we associate cyber risk with capital and we expect ILS investors to represent an increasing share of that capital base,” he continued.

“I look forward to establishing Envelop Capital Markets as the world’s leading risk transfer center for cyber risk.”

Spry added: “We all know that capacity is paramount throughout the value chain; we seek to unlock growth by aligning capital deployment needs with investment opportunities that expand the businesses of our insurance and MGA clients.