Captives set to increase their cyber coverage in 2020
Captives are set to increase their cyber coverage in 2020, according to Captive International’s end of year survey.
Respondents were asked which business lines they expect to see captives increase their activities in in 2020, and were invited to select multiple answers. Cyber was the clear winner, with 64 percent of respondents predicting captives will increase their activities in that area.
Directors and officers and general liability were the next most popular choices, for 55 percent and 53 percent, respectively, with professional liability (38 percent) and catastrophe (35 percent) making up the top five.
Workers’ compensation, which is one of the lines most closely associated with captives, was only selected by 12 percent of respondents, suggesting most captives that need this coverage are probably already writing it.
Many of the respondents to the survey stressed captives would increase their activities in the areas that saw the biggest rate rises in 2020, making the question, in effect, a prediction about where rates will rise.
While must has been said about the potential for captives to write coverage for cannabis growers, only 22 percent saw this as a growth area for captives next year.
“Cannabis, while interesting, will not be solved until the federal laws are addressed,” explained Aidan Kelly, director at Aon. “Terrorism and catastrophe are not new or emerging risks and are not as susceptible to rate increases as other lines. Cat specific rates are already higher than normal. The other lines will see double digit retention and rate increases,” he added.