15 February 2023Analysis

CloudCover Re creates cyber rent-a-captive

CloudCover Re has established what it says is the world's first cybersecurity "rent-a-captive" insurance programme, called CloudCover CyberCell.

This cyber security captive insurance offering is in partnership with Hylant Global Captive Solutions.

According to CloudCover Re the offering comes at a key time, as cyber insurance solutions are lacking cyber coverage as premiums have dramatically increased over the past decade due to significant insurance underwriting losses which point to the rise in cyber-attacks that continue to devastate companies with the infamous data breach that include ransomware claims.

A CloudCover CyberCell Captive is a formal structure to affordably finance self-insured cyber risks. According to the company for the association executive suite the potential liability resulting from cyber-attacks is not only abated, but the cost of cyber insurance is now affordable, while creating new revenue. This partnership will allow associations, affinity groups and large enterprises to provide risk mitigation value to its members in the form of more affordable cyber insurance premiums with more inclusive coverage.

“Unlike conventional cyber insurance offerings, the CloudCover CyberCell captive insurance program operates as a creative answer for any large enterprise or association who is searching for an alternative approach to cyber insurance that provide lower costs while improving the coverage limits...while increasing cyber security protection for participating members,” said Stephen Cardot, chief executive of CloudCover.

“The CloudCover approach involves renting a captive insurance vehicle from CloudCover Re as an alternative to conventional cyber insurance. This is where the beneficial relationship with CloudCover can begin,” added Anne-Marie Towle, global captive solutions leader of Hylant.