Premiums are growing less dramatically as the market adjusts to the increase in ransomware attacks and claims. This includes demands by carriers for clients to demonstrate strong security controls and monitoring.
“With higher payouts by insurers came premiums rising at steeper rates. ‘It was kind of nasty there for a little bit,’ said Robert Parisi, North American head of cyber solutions for Munich Re. He described a hockey stick-like rise in premium pricing over the past two years. The increases mark a correction for premiums, which for years were arguably too cheap, he added.”
The report also alludes to the growth potential of cyber coverage, which remains dwarfed by other commercial insurance policies, but expected to grow not just due to increasing risk, but also requirements from supply chain partners and governments.
Source: Hot Market for Cyber Insurance Begins to Stabilize