Aon Global Risk Consulting, the risk consulting business of Aon, has introduced a cyber captive programme, which aims to assist companies in making more informed decisions around risk retention in a captive, as well as providing broad form risk transfer capacity of potentially up to $400 million.
“While cyber is one of the fastest growing risks for companies across the globe, the cyber risk transfer market has historically been characterised by a challenging underwriting process where cyber risks are difficult to identify and quantify,” said Aon.
“Building a large tower of limits can be hampered by differing policy terms and conditions and dislocation of rates at different layers in a program. Additionally, many organisations facing cyber risks that can result in physical impacts, such as property damage and business interruption, agree that a more comprehensive approach to cyber risk is needed.”
As well as offering coverage for broad cyber exposure with capacity of up to $400 million per policy, the cyber captive programme also includes captive participation on a direct or reinsurance basis.
In order to access the solution, each insured has to undergo Aon’s cyber resilience review, which helps to identify, assess and quantify the cyber risk.
Peter Mullen, CEO of Aon Captive and Insurance Management, commented: “Based on the challenges in the traditional market, Aon developed this solution to provide clients with a comprehensive risk transfer option that they can access through a captive.
“The solution will ultimately allow captive owners the opportunity to take a hard introspective look at their cyber risk profile, identifying important issues and threats for their organisation and placing comprehensive coverage through the Aon cyber enterprise solution.”
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Aon, Cyber, Captives, Risk Transfer, Reinsurance, North America