Tech companies turn to captives as cyber risk increases
An increasing number of tech companies are replacing or supplementing commercial insurance with captive insurance, according to Randy Sadler, principal at CIC Services.
“Captives can address losses associated with complex threats and insure any gaps in commercial policies, so they’re an ideal vehicle to protect tech companies,” said Sadler. “And as a form of self-insurance, when losses don’t occur, the company keeps the profits accrued in the captive insurance company—a powerful strategy.”
Sadler warned the constant evolution in the technology industry can be highly disruptive for companies operating in this sector, with COVID-19 only exacerbating these risks.
Read the full article on Captive International here.