Bermuda-based Mosaic Insurance has teamed up with New York-based hybrid fronting carrier Transverse Insurance Group to offer $20m in cybersecurity capacity in the US.
The strategic partnership represents an expansion of Mosaic’s syndicated programme that was launched in December 2020.
This programme attracts capital from commercial carriers to underwrite specialty risks in regional markets across the world.
Brokered by Acrisure and based on London’s subscription market, the initiative matches Mosaic’s capital through its Lloyd’s Syndicate 1609 with trade-partner capacity for commercial clients.
Mosaic EVP for Syndicated Capital Management Chris Brown said: “We’re thrilled to work with Transverse as a fronting partner to facilitate US-market access to those participating in our syndicated capital business,” said. “The distribution advantage allows our leading cyber team to deploy additional stable, syndicated capacity at a time of critical need. The arrangement also epitomizes our objective of connecting capital directly with designated exposures in specific territories. By doing so, we construct optimally customized portfolios of risk for our capital partners.”
For Mosaic, cybersecurity is considered its core area of expertise and also one of several specialty products that “embody a high technical barrier to entry”.
The firm is developing aggregation studies, risk-assessment, loss-prevention and response capabilities so that its underwriting product is differentiated by data analysis and objective differentiation in client selection.
Transverse co-founder, chairman and CEO Erik Matson said: “We look forward to partnering with Mosaic for this US-syndicated cyber capacity program.
“Mosaic has a proven track record in the specialty underwriting space, and its team brings deep knowledge to this program. With the need for cyber security at an all-time high, we believe this partnership adds value to the market.”
Launched in 2018, Transverse has offices in New York, New Jersey and Texas to serve the programme, MGA, and reinsurance markets.
Given the increasing threats from cyber warfare, data breaches, ransomware, and other attacks on systems and software, there is a growing demand for cybersecurity coverage.
Mosaic global head of cyber Yosha DeLong said: “Through the cyber lens, a lot of companies are becoming more circumspect around exposure and are moving more carefully.
“We’ve got market-leading talent, we’re growing, and we’re looking for opportunities.”
Supported by Golden Gate Capital and the ratings and licenses of Lloyd’s, Mosaic is focused on technical business lines, including transactional liability, cybersecurity, political risk, political violence, financial institutions, and professional liability.
Trade capital partners can either opt for a full-portfolio approach, or even particular products and geographies.
As the syndicated programme does not participate on natural-catastrophe exposures, this enables partners to diversify away from such risks.
Mosaic’s joint venture with DXC Technology will also provide access by syndicated risk partners to an insurtech platform, offering real-time data and distribution of underwriting metrics, besides claims and market data and analytics.