SCOR has entered into a partnership with Baobab Insurance, a Germany-based digital managing general agent, to expand capacity on Baobab's CyberSafe product line – a move that positions both firms to capture growing demand in Europe's underserved mid-market cyber segment.
Under the agreement, SCOR Syndicate at Lloyd's has extended coverage to companies with annual revenues of up to €1 billion in Germany and Austria. The arrangement adds to Baobab's existing binder agreement and joins a group of Lloyd's syndicates already supporting the MGA.
The revenue threshold mirrors recent European expansion strategies by other cyber specialists. According to Guy Carpenter, purchasing behavior in the region is increasingly being driven by manufacturing, financial institutions and energy sectors – segments that have historically seen lower cyber insurance penetration.
Research from Swiss Re shows cyber take-up among SMEs in Europe sits between 10% and 20%, with micro-SMEs even lower at 5% to 10%. The protection gap in mid-market firms is precisely the segment Baobab is now positioned to address.
Jeremy Campagno (pictured above), head of EMEA cyber and technology at SCOR Business Solutions, said Baobab combines technological expertise with a data-driven underwriting strategy.
"This partnership supports SCOR's broader strategy to expand in Europe and strengthen its capabilities in cyber insurance whilst addressing the rising exposure of industrial clients," Campagno said.
The partnership comes amid softening conditions in the European cyber market. Marsh Europe reported in Q3 2025 that 73% of its European clients received premium discounts, with rate reductions reaching 12% in continental Europe and 11% in the UK.
Deductible levels across the region have also fallen 11% since late 2022, reflecting competitive dynamics that may favor capacity expansion strategies.
Soft conditions create room for buyers to increase coverage economically while simultaneously improving resilience – a dynamic that benefits MGAs seeking to build market share ahead of an eventual rate correction.
Research from Pro Global also notes that MGAs are now thriving as extensions of insurer underwriting capability, connecting innovative products with local markets. Insurers increasingly utilize MGAs as a strategic tool to explore new business opportunities while maintaining profitability, the firm said.
Policyholders under the CyberSafe offering have access to risk prevention services, including cybersecurity awareness training, phishing simulations, and consultation with Baobab's in-house cybersecurity team.
Vincenz Klemm, co-founder and managing director of Baobab Insurance, described the partnership as a milestone.
"By increasing our underwriting authority to companies with up to one billion euros in revenue, we are entering a new dimension," Klemm said. "We are proving that our digital approach of data-driven risk assessment and prevention possesses the necessary depth not only for SMEs but also for the upper industrial sector."
