Gallagher Re, the global reinsurance broker, has created a new, on-the-ground cyber reinsurance specialism in Bermuda, expanding the geographic hubs of its global cyber practice.

The company said the dedicated team will be led by specialist cyber broker Seb Plummer, who has relocated to the island, and will enhance support for local clients, help expand cyber capacity provision and facilitate the effective deployment of capital into the cyber space to meet the fast-rising demand across all aspects of the insurance value chain.

Gallagher Re said “creating one of the island’s first – if not the first – cyber-specific reinsurance broking practice”. Mr Plummer has joined Gallagher Re’s established team of reinsurance specialists based in Bermuda to provide dedicated, specialist services and support to its growing number of locally headquartered clients while also focusing on the development of cyber distribution, products and capital.

Ian Newman, global head of cyber at Gallagher Re, said: “As we head with pace towards the property, casualty and cyber market we predicted a few years ago – where cyber inevitably becomes just as significant as the property and casualty sectors – cyber will need massive amounts of additional capital.

“With its reputation for innovation and entrepreneurialism in catastrophe reinsurance and alternative risk transfer, Bermuda is the obvious place to look to develop some of that much needed new capacity as well as build out our own specialist capabilities.

“And with his direct market experience, technical understanding of the underlying product, and cyber reinsurance expertise, Seb is the ideal person to help clients and capacity in Bermuda capitalise on a class rife with opportunities.”

Mr Plummer said: “Bermuda is the perfect partner for what is arguably the most exciting and fastest growing area of re/insurance, and I’m really looking forward to working closely, in person, with our growing number of clients here. There is nowhere better in my mind than Bermuda to seek to develop new capacity that could enable the cyber market to grow sustainably over the next five to 10 years.

“As a market that has recently seen multibillion dollar injections of fresh capital to support start-ups and scale-ups, Bermuda’s renewed vibrancy and increasingly diverse trading environment makes it ideal for the evolution of cyber, which itself enjoys a distinctive and dynamic ability to adapt and react more quickly than other classes.”

Gallagher Re said its global cyber practice already has dedicated cyber teams located in both the United Kingdom and the United States.