Skip to main content
Marsh logo

Article

Edgware Re: A strategic option for funding cyber risks

Interest in financing cyber risks through captive insurers is growing as the commercial market for cyber insurance continues to mature.
Person's name and title

By Peter McKeever , 

Senior Vice President, Cyber

07/09/2025 · 3 minute read

Interest in financing cyber risks through captive insurers is growing as the commercial market for cyber insurance continues to mature. The evolving nature of cyber risks — from ransomware attacks to privacy breaches — has led, at times, to volatility in pricing and capacity. One advantage of using captive entities to fund cyber and other risks is that captives can provide a stable source of capacity.

Marsh’s Edgware Re facility provides an option for businesses committed to cybersecurity that are seeking strategic optionality for cyber programs. This first-of-its-kind group captive provides cyber-only risk financing.

Global commercial cyber insurance rates rose sharply in 2021, continued to increase until mid-2023, and have now fallen through the first quarter of 2025 (see Figure 1). Cyber losses are difficult to predict, and insurers could respond to any future uptick by again increasing rates and tightening terms and conditions. Edgware Re is a strategic cyber risk financing option for like-minded, sophisticated businesses that are willing to share cyber risks and resources to gain stability in pricing and coverage to its members.

Figure 1: Global cyber insurance rates

Insurance buyers continue to face severity, frequency, and financial challenges from cyber threats. In Marsh’s experience, the average incident cost — cyber and tech E&O combined — for the five years between 2020 and 2024 was $3.8 million.  (Note: Data for 2024 is still being collected but is not expected to change significantly at this date.)

Stability in cyber coverage is important for organizations that want to minimize the impact of changes in the insurance market. For example, consider a privately held organization with more than $1 billion in annual revenue that already owns a captive and is comfortable self-insuring the first $1 million or more of its cyber risk. Such a firm could benefit from participating in Edgware Re if it demonstrates a strong commitment to cybersecurity and seeks cyber-only coverage, not technology errors and omissions liability coverage. In addition, the firm would need to have a sizable risk tolerance and the ability to share losses and dividends with other members of the group captive.

How the group captive works

To join Edgware Re, businesses make an initial investment to become participating members and pool their cyber risks. In addition to exchanging cyber risk management best practices, members share in the group captive’s losses and profits.

Edgware Re issues proprietary cyber coverage on a primary or reinsurance basis, and capacity is tailored to the needs of each member. Participating members are indemnified for covered losses, but they also can receive dividends as Edgware Re meets profitability objectives. Marsh provides a high level of support through captive management, incident response, vendor engagement, and claims advocacy.

Benefits of Edgware Re

Edgware Re offers a unique opportunity for organizations to transact business exclusively with fellow participating members to provide a strong network of collaboration. Members benefit from indemnification for covered losses and the potential for underwriting profits to be returned as dividends. By pooling participants’ risks, Edgware Re provides additional pricing stability and control, reducing market volatility.

With Marsh’s proprietary cyber insurance wordings, members enjoy contract certainty and the flexibility to use capacity strategically to meet their specific goals. Group membership fosters a collaborative environment where leaders share cybersecurity best practices, leverage economies of scale, and enhance their buying power. This collective experience enriches individual learning and cultivates valuable relationships, empowering members to drive greater success for their organizations.

At a time when cyber threats continue to proliferate, Edgware Re enables like-minded and similarly situated members to intelligently fund cyber risk.

Get connected with a Marsh Cyber specialist

Fill out the form to connect with a Marsh Cyber specialist

Fill out the form

Related insights

Blue glass wall and sun reflections

Report

2025 Captive benchmarking report

06/27/2025
Placeholder Image

Podcast

Risk in Context Podcast: Unlocking captive potential through strategic optimization

02/18/2025
Business success and growth concept.Stock market business graph chart on digital screen.Forex market, Gold market and Crude oil market

Article

The rise of cell captives

01/06/2025
Placeholder Image

Article

ESG Captive Solutions Guide

12/15/2024
View more