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Aon has released its first annual Captive Cyber Survey report, which found that business interruption due to a breach is the top cyber risk concern for businesses across all industries. The report seeks to offer a “better understanding of organizations’ current attitude towards cyber threats, risk assessment, insurance purchasing trends and loss adjustment concerns,” and dives into current retail market trends such as captives and additional “risk financing solutions.”  “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. “Captives are a great alternative risk transfer solution for bridging this gap while the industry’s approach to cyber risk management catches up to the evolving pace of technology.”

Another common concern with quantifying cyber risk is the lack of actuarial data in the market. However, this survey also found that 94 percent of companies are willing to share their risk with others in the industry, proving support for a captive facility writing cyber. Aon further explains that these alternative risk transfer options are being increasingly preferred because it allows companies to have some control over underwriting, coverage scope and claims adjustment, and can also provide a median to “share best practices, experience, and data in a private setting.”

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