Since their introduction to the market in 2023, there’s now been 10 cyber cat bonds, and CyberCube, the cyber risk analytics provider, expects their coverage, along with cyber insurance-linked securities (ILS) solutions to narrow and become more targeted going forward.In their 2025 Cyber Predictions report, CyberCube states that changes in reinsurance capacity and capital mix, as well as in the structures used, will continue to be seen.According to the firm, this will happen in both traditional reinsurance, with some reinsurance carriers playing a unique strategy to their advantage, and across the ILS space too.“We’ve already seen an increase in demand for more non-proportional coverage.

While change has been slow thus far, it will continue to push forward,” CyberCube explained.Saying this will happen “in the ILS space, with instruments coming to market with more narrow scopes than the 144a structures already in play.” While the 144A cyber cat bonds seen so far provide broad cyber catastrophe reinsurance or retrocession coverage, as data continues to improve on cyber exposures, this presents a key opportunity for the ILS market to provide even more targeted protection.You can read about every cyber cat bond transaction, including the first private cat bond deals and the more recent 144A cyber cat bonds, .

Moving forward, both the insurance and reinsurance industries are expected to install more robust data-driven insights into their risk management strategies throughout 2025, says CyberCube.“With continued advancements in modeling and analytics, insurers and reinsurers will refine their ability to differentiate performance at a highly granular level,” the firm continues.In addition, CyberCube notes that for reinsurers, “the growing importance of exposure management will solidify the role of data in assessing cedant quality.” “Reinsurers will harness next-generation analytics to identify cedants with superior underwriting discipline, balanced portfolio composition, and proactive loss management.

The ability to differentiate cedants based on their aggregate impact on risk models will be critical in shaping long-term partnerships and optimizing capital deployment,” the firm said..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.