Marsh has introduced Edgware Re, a group captive company designed to offer enhanced control and stability in cyber insurance programmes.
Based in Bermuda, Edgware Re only transacts business with its members and allows participants to purchase up to US$10 million in insurance or reinsurance based on their needs.
Marsh will support the new company with captive management, incident response, vendor engagement and claims advocacy.
This initiative arrives in response to recent instabilities in cyber insurance pricing and coverage, aiming to pool cyber risks and premiums, absorb losses and enhance the exchange of cybersecurity practices among its members.
Participants in Edgware Re’s programmes will also be eligible for dividends in the event of requisite profitability.
Tom Reagan, global cyber practice leader at Marsh Specialty, says: “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 an 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.”
Ellen Charnley, president of Marsh Captive Solutions, emphasises: “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 practices and potential profit sharing.”
Previously, Marsh launched an AI-powered platform, ReadyCell, that enables organisations of all sizes to open their own insurance company and take control of their risk management.
