Marsh forms cyber-only group captive
Marsh has created a Bermuda-based group captive insurance company designed to meet companies' cyber risk needs.
The insurance broker and risk advisor said it had formed Edgware Re to give organisations more control and stability in their cyber insurance programmes.
Marsh said Edgware Re is a cyber-only group captive that will only transact business with its participating members. Participating members can purchase up to $10 million in insurance or reinsurance from Edgware Re based on their needs. Limits are expected to grow as participation increases. Marsh will provide captive management, incident response, vendor engagement, and claims advocacy support to Edgware Re.
“As the scale, frequency, and economic impact of cyber events continue to grow, organisations must regularly reconsider and optimize their cyber risk strategies. Edgware Re is a great example of Marsh working with its clients to use their own capacity to create a sustainable insurance programme that better meets their needs in today’s market,” said Tom Reagan, Global Cyber Practice Leader, Marsh Specialty.
Ellen Charnley, president of Marsh Captive Solutions, added: “The captive insurance market is a proven risk financing alternative for organisations that want to take greater control of their risk and gain increased financial flexibility and protection. Edgware Re offers its participants the potential for more stable pricing and control, access to shared best practices, and potential profit sharing; and is the latest Marsh captive innovation following the recent launch of ReadyCell.”
ReadyCell is an artificial intelligence-powered risk financing solution for businesses of any size to quickly form their own insurer and take control of their risk management.
The creation of Edgware Re comes after a volatile period of cyber insurance pricing and coverage modification. To stabilize these effects, Edgware Re will use Marsh’s industry-leading cyber policy forms, pool participants cyber risks and premiums, absorb their losses, and foster the exchange of cybersecurity best practices. Additionally, participant members will be eligible for dividends in the event of requisite profitability.
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