Marsh launches $10m cyber-only group captive company in Bermuda
Global broker Marsh, a business of Marsh McLennan, has created a cyber-only group captive insurance company, called Edgware Re, in Bermuda.
Edgware Re is designed to provide more control and stability in cyber insurance programmes. Marsh will provide captive management, incident response, vendor engagement, and claims advocacy support to Edgware Re.
Edgware Re 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 believes.
Marsh said the creation of Edgware Re comes after a volatile period of cyber insurance pricing and coverage modification. To stabilise these effects, Edgware Re will use Marsh’s 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 will be eligible for dividends in the event of requisite profitability.
“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 program 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.”
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