Tuesday, May 21, 2024

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Marsh targeting 15-20 Edgware Re members by year-end

Marsh is expecting its new cyber group captive, Edgware Re, to have between 15 and 20 members by the end of the year, according to Ellen Charnley, president of Marsh Captive Solutions.

The broker and captive manager launched the Bermuda-domiciled group captive in March 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.

Speaking on the Global Captive Podcast, while at RISKWORLD in San Diego, Charnley said: “We’ve seen tremendous interest and we’ve got a full pipeline. We’re having a huge number of conversations about it prior to RIMS and also here at RIMS as well.

“We are anticipating probably up to somewhere around 15 to 20 members by the end of the year, which would be a terrific number, but there’s really no limit.”

Thomas Reagan, global head of cyber at Marsh Specialty, said the intermediary wanted to give clients a “cutting edge tool” that allowed them to take back control, effectively deploy capital, and drive more oversight over what has previously been a volatile market.

“Clients want to be a little bit more in charge, a little bit more in the driver’s seat around their cyber transfer programme than they have in the past,” he said.

Charnley said Marsh has seen a 17% increase in premium growth year on year for captives writing cyber, with the broker now managing 102 captives writing the line of business.

“Just a few years ago we didn’t even talk about cyber and captives, but now it’s a hot topic and companies want to know more and more about it, whether it’s plugging holes, deductibles, top layers, you name it,” she added.

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