Rosehana Amin from Clyde & Co’s global cyber risk team examines what captives can do to review and potentially improve your risk management of cyber events.
IBM’s “Cost of a Data Breach Report 2024” shows that the global average cost of a data breach in 2024 is $4.88 million, a 10 percent increase on 2023. Effective risk management could, however, significantly reduce the cost to a company, and in some cases prevent the data breach altogether. Organisations are increasingly turning to captive insurance to provide cyber insurance. As a captive manager it is key to understand the underlying risks surrounding a cyber event.
One of the issues facing large multinational organisations in a landscape of continued evolving cyber risks and growing regulation is that the limits in the cyber insurance market are not sufficient. A captive is able to provide multinationals with the required level of cover as a cost-effective alternative and potentially better coverage terms.
As captives increasingly explore writing cyber risk as a risk transfer solution, it is important for captives to consider cyber risk management beyond a capacity issue. Captive managers and insurance risk…
