Challenges Increased Year-on-Year Primary Cyber Retention: Cyber (re) insurance market dynamics and a recent large cyber event prompted a drastic increase in primary policy per claim retention. Retained Risk Volatility Concerns: The client was willing to utilize its captive to buydown its corporate retention but had concerns that annual risk volatility in the retention layer would erode the captive’s growing capital base. Solution AXA XL developed a multi-year structured reinsurance policy, with a 5-year term including specified per claim, per annum, and term aggregate limits, featuring risk sharing via an Experience Balance. Features & Benefits Experience Balance: An Experience Balance enables the captive’s participation in loss experience, including profit and risk-sharing overtime.

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