Marsh forms group cyber captive

Based in Bermuda, Edgware Re is a cyber-only group captive that will only transact business with its participating members


Marsh has today announced the creation of Edgware Re Ltd., a Bermuda-domiciled cyber-only group captive.

Edgware Re will only transact business with its participating members, who can purchase up to $10 million in insurance or reinsurance from the captive based on their needs.

Limits are expected to grow as participation increases. Marsh will provide captive management, incident response, vendor engagement, and claims advocacy support to Edgware Re.

Edgware Re will use Marsh’s cyber policy forms to 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.

Ellen Charnley, president of Marsh Captive Solutions, said: “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; and is the latest Marsh captive innovation following the recent launch of ReadyCell.”

For a more in-depth look at this innovative new cyber group captive read our exclusive interview with Marsh Captive Solutions president Ellen Charnley.

As well as further details on how the captive will operate and be capitalised, she reveals more about the first companies anticipated to become members, when she expects the captive to begin writing coverage, and details on Marsh’s growth in captive cyber premium during 2023.

Volatile period

The creation of Edgware Re comes after a volatile period of cyber insurance pricing and coverage modification, and is the latest innovation proposed by the captive industry.

A similar Belgium-based cyber-only insurance company writing policies for European companies, MIRIS, launched last year, in response to the hard cyber market and the difficulty accessing capacity. However, MIRIS is a mutual, unlike Marsh’s Edgware Re, which is a group captive.

Attempts have been made to bring ILS funds to the cyber market, while MGA Intangic reported to Captive Review receiving a “much greater than expected” level of interest from captive managers in its cyber parametric insurance product.

“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, Marsh Specialty.

“Edgware Re is a great example of Marsh working with its clients to use their own capacity to create a sustainable insurance programme that better meets their needs in today’s market.”


12 August 2024
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