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Cyber insurance-linked bonds stay quiet in 2026 as soft reinsurance market cuts demand
CyberCube says investor interest remains strong, with more demand than sponsor supply, and expects additional cyber cat bond supply alongside ILW transactions over time.
Cyber insurance-linked securities, including 144A cyber catastrophe bonds, have seen a quiet stretch in 2026, but investor appetite has not cooled, according to Artemis. Artemis reports that Brittany Baker, VP of Solution Consulting at CyberCube, linked the slowdown to the broader reinsurance environment, saying a “soft market” has left traditional reinsurance capacity available at lower prices, reducing the need to shift risk and capital management toward the cyber ILS market. Baker also said investor engagement is not the limiting factor, with CyberCube seeing more investor demand than sponsor supply. The last 144A cyber catastrophe bonds to reach the market were in December 2025, and the only cyber cat bond seen so far in 2026 was a renewal of Hannover Re’s parametric cloud outage cat bond, Cumulus Re. While cyber cat bond issuance has been muted, Artemis notes that industry-loss warranty transactions are still appearing. Baker added that CyberCube expects increased bond supply for investors in the near future and said investors that stay aligned with the evolving threat landscape will be best positioned when new deals come to market.