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Cyber reinsurance buyers shift toward strategic capacity deployment
As renewals approach for Jan. 1, 2027, Ariel Re’s head of cyber underwriting expects insurers to focus more on structure and attachment points than on broad pricing changes.
Cyber reinsurance capacity is expected to stay ample and pricing competitive, but the industry’s focus is shifting toward how insurers deploy reinsurance capital across the loss distribution, according to Daniel Carr, head of cyber underwriting at Ariel Re, speaking in an interview with Reinsurance News.
Carr said the key question is no longer whether capacity exists, but where along the loss spectrum cedents choose to use it. He pointed to a changing cyber risk landscape happening at the same time as primary market pricing remains competitive.
The executive also highlighted growing concerns about dependency, aggregation, and volatility in insurers’ portfolios, as well as the economics of transferring more predictable, attritional exposure. He said this is already influencing purchasing behavior ahead of the Jan. 1, 2027 renewals.
Carr expects a more deliberate approach centered on reinsurance structure, attachment, and event definition, including greater interest in non-proportional, aggregate, and catastrophe-oriented protection, while insurers aim to retain more predictable attritional risk. He added that rising AI adoption could affect attritional loss experience, requiring cedents to balance retained and transferred risk rather than treat the choice as binary.