Logo ofSaudi Reinsurance Co. (Saudi Re)
Saudi Reinsurance Co. (Saudi Re)entered the cyber risk retrocession market, joining a broader wave of companies entering the sector, Reuters reported, citing a reinsurance broker and a cyber risk underwriter. 
Retrocession occurs when a reinsurer transfers part of the risks it has assumed to another reinsurer in exchange for a premium or a share of premiums. This enables the reinsurer to increase its capacity to underwrite new policies, reduce volatility in its results, and mitigate the impact of large or unexpected losses.
The news agency said that between five and 10 reinsurers are expected to enter the market in 2026, citing sources.
These include insurers with no prior exposure to cyber risks, as well as reinsurers already active in the sector that are entering into retrocession agreements for the first time.
The trend comes amid difficulties in securing capacity in cyber risk reinsurance programs, which are seeing strong demand and lower operating costs associated with entering the market through retrocession.
Logo ofSaudi Reinsurance Co. (Saudi Re)
Saudi Reinsurance Co. (Saudi Re)entered the cyber risk retrocession market, joining a broader wave of companies entering the sector, Reuters reported, citing a reinsurance broker and a cyber risk underwriter.
Retrocession occurs when a reinsurer transfers part of the risks it has assumed to another reinsurer in exchange for a premium or a share of premiums. This enables the reinsurer to increase its capacity to underwrite new policies, reduce volatility in its results, and mitigate the impact of large or unexpected losses.
The news agency said that between five and 10 reinsurers are expected to enter the market in 2026, citing sources.
These include insurers with no prior exposure to cyber risks, as well as reinsurers already active in the sector that are entering into retrocession agreements for the first time.
The trend comes amid difficulties in securing capacity in cyber risk reinsurance programs, which are seeing strong demand and lower operating costs associated with entering the market through retrocession.
