Captives in cyber and CMT well worth watching: Marsh

When it comes to making the most of your captive, there is growing interest in what it can do to help cover cyber risks, Robert Geraghty, senior vice president and international sales leader at Marsh Captive Solutions, told Airmic Today.

“Cyber is definitely trending,” Geraghty said, highlighting a 15 percent increase in 2018 in companies writing cyber risk in captives around the world. Currently there is nearly $41 million gross written premiums for cyber written in captives.

“The more data a company deals with the more likely they are to put money in the captive,” he added.

“A captive is a good starting point for companies in this area. It’s a way of looking to assess and pre-fund any potential losses that may occur.”

Another trend identified by the Marsh Captive Solutions expert was the growing potential for the communications, media and technology (CMT) sector.

“Who is using captives? Financial institutions account for 23 percent of them,” he said.

While CMT is in seventh place overall in the number of captives that Marsh manages, this group of companies is second in terms of levels of gross written premiums, which total more than $6.5 billion, according to a June 2019 report by Marsh, Securing your future with a captive.

“That shows us they are running all the lines they can through the captive,” he concluded.