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New Dawn Risk’s Webster forecasts bright 2022 for cyber captives

9th December 2021 - Author: Charlie Wood

New Dawn Risk’s James Bullock-Webster believes that at some point in the coming year larger clients will no longer see value in transferring exposure to the insurance market, instead turning towards harnessing the unique benefits of captives.

Bullock-Webster, who serves as Head of Technology, Media and Cyber, sees great potential for the captive space moving forward.

While setting one up has historically only been realistic for large multinationals, the increasing availability of cell companies is described as having opened up the solution to a broader scope of people.

The lower barriers to entry involved with cell captives are seen as a simpler and more cost-effective alternative to what has been a hardening, cash strapped space.

“Companies of all sizes looking for cyber insurance will no longer be at the mercy of a fluctuations in appetite and rate and will opt to do it themselves,” said Webster.

“In the face of a continuing difficult cyber insurance market, the coming year will see buyers looking for alternative risk transfer solutions, with captives topping the list.

“The cyber market has continued to harden throughout 2011. Rates have been increasing substantially, anywhere between 40% and 200%. 

Meanwhile, carriers are routinely dropping their limits by as much as half and maintaining the same premiums – in effect doubling rates.”

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