Are cyber captives on the horizon?
More and more organizations are considering using captives to address their cyber risks but just as the risk is evolving so is the role of captives in this area, according to an Aon expert.
Captives should be considered by certain clients, says Stephanie Snyder, national sales leader of cyber insurance for Aon.
But the use of captives is not widespread and businesses are still learning about the risk and how to handle it.
“There are still a lot of question marks,” says Snyder in a video report from the RIMS 2016 conference.
Aon Global Risk Consulting conducted in its first-ever Captive Cyber Survey in the fall of 2015 with risk managers and directors of more than 125 captive insurance companies.
The survey found that 61 percent of survey respondents buy cyber limits in the $10-25 million range, but overall 60 percent of large companies do not buy cyber insurance.
“Our findings also indicate that there is a disparity between companies recognizing that cyber is one of the fastest growing and permeating risks, and actually understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report.