Cyber market primed for captive utilisation

• Ransomware accounted for 70% of total claims costs incurred by CFC Underwriting in 2022
• More than 120% of growth in number of captives writing cyber in Marsh’s portfolio
• Single parent, cell captives and mutuals all established to provide cyber capacity to insureds

A lack of capacity and high pricing in the cyber market is resulting in increasing captive utilisation for cyber risk.

The commercial market has seen periods of triple-digit rate increases during one of the most significant periods of hardening ever experienced in cyber, primarily driven by costly ransomware claims.