InsurTech Forming Captive To Take Risk on Cyber-Insurance Programs

Man holding virtual blue safe with lock icon and dial and the words CYBER INSURANCE in glass above a desk in an office

December 17, 2021

Man holding virtual blue safe with lock icon and dial and the words CYBER INSURANCE in glass above a desk in an office

Commercial InsurTech provider Coalition plans to form a captive insurance company to allow it to begin taking risk on its cyber-insurance programs.

In a statement, Coalition said the captive would enhance its ability to manage capacity and long-term growth objectives while providing additional alignment of incentives with the company's customers.

Dovid Tkatch, Coalition's recently appointed head of insurance infrastructure and actuarial science, will support development of the new captive insurance company as well as oversee pricing, reserving, capital requirements, and regulatory compliance.

Coalition provides cyber insurance and security, combining comprehensive insurance and proactive cyber-security tools to help businesses manage and mitigate cyber risk. The company is backed by Swiss Re Corporate Solutions, Arch Insurance, Lloyd's of London, and Zurich North America.

Coalition's broker platform integrates real-time security, financial, regulatory, and transactional data to allow brokers to generate bindable quotes in 5 minutes.

"With our new captive, we add another layer of security and stability and more closely align our financial incentives with our customers," Shawn Ram, head of insurance at Coalition, said in the statement.

December 17, 2021