Hiscox Ltd (LSE:HSX) lists increasing cyber insurance rates as part of its turn to profitability in the first half of 2021, according to its 2021 interim and Chairman’s statement.
“Rate strengthening is particularly prominent in cyber, where we have seen an average rate increase of 20%, primarily in response to the increased frequency and severity of ransomware claims across the industry,” said a statement from the company.
It’s not only rates that are rising, but also claims, which are more frequent and severe. As a result, the company is adjusting its “cyber risk appetite:”
“We have adjusted the Group’s cyber risk appetite and implemented corrective actions including repricing, focusing on customers with lower revenues in Retail and writing at higher excess levels in London Market. We also attach great importance to mitigation actions taken by customers, as human error is by far the biggest business vulnerability when it comes to cyber attacks.”
In the US the changes include adding new features such as co-insurance and a sub-limit for ransomware.
The company also discussed its Hiscox CyberClear Academy, which trains small businesses how to counter cyber threats and develop resiliency. Over the last three years, 20,000 people from 5,000 businesses have been trained, Hiscox reports. “We incentivise all our small business customers with revenues under $10 million to attend the (academy).”
Source: Cyber premiums climbing as businesses rush for protection says Hiscox Ltd