Cyber Insurance — A Huge Rate Increase

Cyber insurance premiums are rising at a very, very high rate. A.M. Best said in the first quarter of 2023 prices jumped 8.4%. The company calls the hikes “notable” but notes they’re not as close to as high as the 34.3% in the fourth quarter of 2021.

Packaged cyber policies have the largest number of policies but a lower share of the total cyber premiums. Insurers prefer standalone policies to things packaged.

Surplus lines insurers are the market leaders.

“Surplus lines writers have taken advantage of the price increases on new business and absorbed almost all of the growth in the cyber market, resulting in greater profits for them,” the A.M. Best report says.

The top 20 insurers writing cyber programs — Best said — control 78% of the market.

The top 4 writers of cyber insurance are the same as they were a year ago:

  • Chubb
  • Fairfax Financial Holdings
  • Axa
  • Tokio Marine Holdings

Source link: Business Insurance —

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