Envelop Risk, the global specialty cyber underwriting firm, has launched Bermudian-based Envelop Capital Markets, a practice led by veteran underwriter and ILS specialist David Ross.

The company said the practice, announced Tuesday at Rendez-Vous de Septembre in Monte Carlo, will bring new and efficient sources of risk capital to the cyber reinsurance marketplace, while developing and underwriting indemnity, parametric and index-based structures to best fit with this capital.

Envelop Capital Markets has launched Augmented Re, its own Class 3A reinsurer, which it will use to develop a collateralised reinsurance market for cyber risk.

Mr Ross, executive vice president of ILS & Capital, said: “Envelop Risk have developed a market-leading capability in underwriting cyber reinsurance supported by best-in-class analytics.

“At Envelop Capital Markets we match cyber risk with capital, and expect ILS investors to be a growing part of this capital base. I look forward to developing Envelop Capital Markets into the primary global risk transfer hub for cyber risk.”

Mr Ross will work closely with Envelop Risk CUO, Ari Chatterjee, in Bermuda, and Envelop’s cyber risk and portfolio analytics teams in the UK.

Jonathan Spry, Envelop co-founder and CEO said: “We all know capacity is at a premium throughout the value chain; we seek to unlock growth by aligning capital deployment needs with investment opportunities that expand the business of our insurance and MGA clients.”

Envelop Risk is a global specialty cyber underwriting firm based in London and Bermuda. The firm began underwriting cyber risk in late 2018 and has established itself as a leading cyber reinsurer globally, with over $500 million in gross written premiums underwritten to date.

The firm is backed by Softbank Vision Fund 2, MS Amlin, Alpha Intelligence Capital, Integra Partners, and Chimera Abu Dhabi.