2026-09-07 · Source: ARTEMIS Reinsurance
Summary in 3 Points • Investor interest in cyber insurance-linked securities remains strong despite a lack of new 144A cyber catastrophe bonds in 2026 • CyberCube is actively educating investors on cyber risks and opportunities, including the impact of artificial intelligence • AI developments could influence the cyber threat landscape and create new opportunities for the insurance-linked securities market --- Investor appetite for cyber insurance-linked securities (ILS) remains strong, even though no new 144A cyber catastrophe bonds have been issued in 2026. Brittany Baker, VP of Solution Consulting at CyberCube, explained that the current soft market conditions mean traditional reinsurance capacity is available at lower prices, reducing the immediate need for ILS. However, investor interest is not a limiting factor, as many have educated themselves on the asset class and are prepared for future opportunities. CyberCube is committed to educating investors on the evolving cyber risk landscape, including the potential impacts of artificial intelligence. AI is seen as a factor that could amplify the cyber threat landscape, affecting frequency and severity trends in cyber coverage and potentially leading to new insurance structures.
The London insurance market could see increased interest in cyber ILS as investors become more educated and the market conditions change. Underwriters may need to consider the evolving cyber threat landscape, particularly with AI developments, which could introduce new risks and opportunities. This may lead to the creation of new policy wordings or standalone AI lines of business. As the traditional market hardens, there could be a shift towards ILS for risk transfer, impacting pricing and capital allocation strategies within the London market.