Marsh sets up cyber-only group captive in Bermuda
Marsh, the international insurance broker and risk adviser, has created a cyber-only group captive insurer in Bermuda.
The company said Edgware Re Ltd is for organisations seeking more control and stability in their cyber insurance programmes.
The group captive will only transact business with its participating members, which 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.
The company said the creation of Edgware Re comes after a volatile period of cyber insurance pricing and coverage modification.
To stabilise these effects, the company said, 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.
Tom Reagan, global cyber practice leader, Marsh Specialty, said: “As the scale, frequency, and economic impact of cyber events continue to grow, organisations must regularly reconsider and optimise 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.”
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.”
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