We all knew the general trend reported by AM Best. Headline: “The U.S. cyber insurance market continued strong growth in 2022, with direct premium increasing by 50% to $7.2 billion and improving loss ratios given greater attention to underwriting discipline…”
But the report, aside from adding details, notes some other important trends.
“More than 70% of cyber premium is written on standalone policies, with the 2022 total standalone DPW exceeding all 2021 cyber insurance premium.” The company heralded this as likely to reduce disputes and litigation.
Most cyber insurance premiums are now accounted for by surplus lines writers. “From the time the NAIC started collecting data on cyber insurance in 2015 until the hard market of 2020, surplus lines companies held a relatively steady 25% share of the cyber market. However, since then, cyber premium written by surplus lines insurers increased by more than 500%, now representing nearly 60% of total cyber market premium.”
Read the report here: “US Cyber: First Hard Market Cycle Brings a Return to Profitability.”