Current Trends in the Cyber Insurance Marketplace

October 18, 2024

For the past several years, organizations around the world have faced skyrocketing cyber insurance costs as insurers reduced coverage, increased deductibles and dramatically raised premiums. Some insurance carriers halted cyber policy renewals and stopped writing new cyber business.

However, these dynamics are beginning to change. In some cases, new capacity has entered the market as carriers see the opportunity to capture premium for select accounts with robust cybersecurity postures. In other cases, carriers have responded to certain cyber events, leading to mixed market conditions.

In honor of Cybersecurity Awareness Month, here are some trends and realities about the current state of cyber insurance:

• Some carriers have been reporting underwriting profits, which is creating more capacity. As a result of the increased capacity, we’re seeing premiums decline, allowing policyholders to secure broader coverage at more favorable terms in some areas of the market.
• Carriers are requiring companies to have robust cybersecurity systems in place. To protect themselves from losses, insurers are increasingly requiring policyholders to have certain internal security measures in place as a condition for coverage. These might include employee phishing training, data backups and multi-factor authentication. See our previous article on this topic here.
• Cyber insurance is still a volatile market. Similar to property coverage, the cyber market is susceptible to swings based on large-scale cyber events that impact profitability. Just as a bad hurricane season can impact property coverage, a string of costly cyber events can trigger underwriters to reduce cyber insurance capacity.

Secure coverage with an expert

Cybersecurity Awareness Month is a great time to reexamine your coverage needs. The cyber insurance landscape is complex and constantly changing, making the guidance and support of an experienced and knowledgeable broker more important than ever.

At Conner Strong & Buckelew, our in-house cybersecurity experts can analyze your situation, offer advice to help you mitigate cybersecurity risks and help you secure the coverage you need at the best possible terms.

For more information on how our team can help, please reach out to your Conner Strong & Buckelew representative, call us at 1-877-861-3220 or email [email protected].