Aon announces an alternative cyber risk transfer approach
New holistic solution builds on Aon’s suite of cyber risk tools, helping organizations gain better control of evolving cyber threats...
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.
Aon’s Cyber Captive Program is the firm’s latest cyber offering. Last year, Aon launched Aon Cyber Enterprise Solutions, an insurance policy that offers comprehensive and integrated enterprise-wide coverage against cyber risk, as well as acquired Stroz Friedberg, a leading global risk management firm. Additionally, James Trainor, a cyber expert formally with the Federal Bureau of Investigation, joined Aon’s cyber team.
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