Media coverage
Artemis features Christian Bruns’ views on cyber risk
The trade publication Artemis asked Christian Bruns, Partner at LGT Capital Partners, for his views on cyber risk. Christian explained that the firm has not so far allocated assets to cyber risk as the risk modelling for these events is still somewhat in its infancy.
According to Christian, cyber cat bonds are structured as excess-of-loss deals, meaning the premium is set for the term of the investment. The trigger for these bonds to pay out is when the sponsor suffers a specific financial loss as a result of a cyber event. The return for investors is therefore fixed and not linked to the profitability of the underlying exposure.
Christian concludes that for evolving threats such as cyber risk, excess-of-loss reinsurance transactions are not an optimal form of assuming this risk as a capital provider. However, he said the team will continue to assess market developments and may transact cyber risk in quota-share format through its in-house rated reinsurance carrier Lumen Re.
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