Aon announces an alternative cyber risk transfer approach
- Published: Thursday, 26 January 2017 09:14
As cyber risk continues to evolve, Aon Global Risk Consulting, has introduced its Cyber Captive Program, which guides companies through a series of steps to help identify, assess and quantify their cyber exposures – ultimately 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 characterized by a challenging underwriting process where cyber risks are difficult to identify and quantify. 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 organizations 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.
“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,” said Peter Mullen, Chief Executive Officer, Aon Captive and Insurance Management. “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 organization and placing comprehensive coverage through the Aon Cyber Enterprise Solution.”
The Cyber Captive Program consists of:
- Aon Cyber Resilience Review, which will help identify, assess and quantify cyber risk;
- Comprehensive coverage through the Aon Cyber Enterprise Solution form, covering broad cyber exposure;
- Consistent comprehensive coverage with significant capacity of potentially up to $400 million per policy;
- An underwriting process that facilitates an improved overall understanding of the risk;
- Captive participation on a direct or reinsurance basis.
To access the solution, each insured is required to undergo the Aon Cyber Resilience Review. Policy limits available up to potentially $400 million in capacity per policy excess of $25 million.www.aon.com/default.jsp