Wednesday, July 24, 2024

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Marsh launches Edgware Re, cyber group captive in Bermuda

Marsh has launched a Bermuda-domiciled cyber group captive for companies seeking more control of their cyber insurance programmes.

Edgware Re is a cyber-only group captive, licensed as a Class 3 insurer in Bermuda, that will only transact business with its participating members.

Participating members can purchase up to $10m in insurance or reinsurance from Edgware Re based on their needs, and limits are expected to grow as participation increases.

“As the scale, frequency, and economic impact of cyber events continue to grow, organisations must regularly reconsider and optimise their cyber risk strategies,” said Tom Reagan, global cyber practice leader at Marsh Specialty. 

“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.”

The captive will use Marsh’s cyber policy forms, pool participants’ cyber risks and premiums, absorb their losses, and foster the exchange of cybersecurity best practices.

Participating members will be eligible for dividends in the event of requisite profitability. 

Marsh will provide captive management, incident response, vendor engagement and claims advocacy support to Edgware Re.

“The captive insurance market is a proven risk financing alternative for organizations that want to take greater control of their risk and gain increased financial flexibility and protection,” said Ellen Charnley, president of Marsh Captive Solutions.

“Edgware Re offers its participants the potential for more stable pricing and control, access to shared best practices, and potential profit sharing.”

In January, Marsh Captive Solutions launched ReadyCell to enable organisations to form their own insurance company within its Mangrove Protected Cell Facility in Washington DC.

In September, Captive Intelligence published an article highlighting that captives writing cyber coverage in their programmes is “emerging as a trend”.