Marsh launches Bermuda-based cyber-only group captive

Marsh has launched a cyber-only group captive insurance company in Bermuda.

Edgware Re is a group captive for organisations seeking more control and stability in their cyber insurance programmes, said the broker.

Edgware Re will only transact business with its participating members who can purchase up to $10m in insurance or reinsurance from Edgware Re based on their needs. Marsh said limits are expected to grow as participation increases.

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

Marsh said the creation of Edgware Re comes after a volatile period of cyber insurance pricing and coverage modification. “To stabilise these effects, Edgware Re will use Marsh’s industry-leading cyber policy forms, pool participants cyber risks and premiums, absorb their losses, and foster the exchange of cybersecurity best practices. Additionally, participant members will be eligible for dividends in the event of requisite profitability,” said the broker.

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

Ellen Charnley, president of Marsh Captive Solutions, added: “The captive insurance market is a proven risk financing alternative for organisations that want to take greater control of their risk and gain increased financial flexibility and protection. Edgware Re offers its participants the potential for more stable pricing and control, access to shared best practices, and potential profit sharing.”