Cyber

As traditional insurers grapple with the scale, concentration and complexity of these risks, captives could provide an additional tool for data centre operators looking to retain and finance exposures that are becoming harder to place in the commercial market. 

Public sector organisations could become an important early market for the United Kingdom's new captive regime, particularly as councils, utilities and other publicly funded bodies look for greater control over their risks. 

Riverside Health System is looking to expand the role of its Bermuda-domiciled captive by moving the high-deductibles from its workers' compensation and cyber insurance programmes into the vehicle. 

In this thought leadership piece, the authors explore how captives can play a broader role in managing supply chain cyber risk and strengthening third-party cyber resilience.

The strategy forms part of a long-term effort to increase retention within the captive while maintaining relationships with commercial market partners and ensuring coverage remains sustainable across the organisation's network. 

While softer pricing has traditionally reduced the incentive to retain risk within a captive, the current cyber market is not triggering a widespread retreat from captive utilisation. 

It may be a good time to buy insurance in the commercial market, but the role for captives continues to expand and carriers such as Zurich embrace the partnership and value a captive can provide.

Esme Gould and Nick Pritchard, of Zurich Insurance Company UK, discuss the state of the commercial cyber market and the current trends in how corporates are using their captive.