Insurance
Home›Insurance›Reinsurance›Man Group says existing cyber cat bonds may hold up de…
Man Group says existing cyber cat bonds may hold up despite new AI risks
Man Group said most outstanding cyber catastrophe bond deals are per-occurrence structures with high attachment points, which it views as insulation against future turbulence as AI models advance.
Investment manager Man Group said existing cyber catastrophe bond structures are likely to provide meaningful insulation from future turbulence tied to the growing capabilities of advanced cybersecurity AI, including Anthropic’s Claude Mythos.
Man Group pointed to concerns that Mythos Preview can operate at scale in vulnerability discovery and exploitation, noting Anthropic has launched Project Glasswing to use Mythos Preview for defensive security, while the company plans to add safeguards that detect and block malicious use.
The firm also said Anthropic’s evaluation identified thousands of highly critical vulnerabilities, raising the prospect that malicious actors could eventually obtain similar model capabilities and exploit vulnerabilities at scale, with implications for cyber security, cyber insurance, and cyber cat bonds.
Man Group highlighted that of six outstanding 144A cyber catastrophe bond deals, five are per-occurrence deals, and it cautioned that defining a single occurrence and linking cyber events can be complex, but high attachment points and per-occurrence structures imply insured losses would need to be substantially larger than what has been seen to date.